The value of a company's operations equals the sum of all of the following EXCEPT:
A)Invested capital.
B)The market value of nonoperating assets.
C)The present value of economic profit from continuing value.
D)The present value of economic profit of the explicit forecast period.

Question

Quizplus · Accepted Answer

Non-operating assets are not part of a company's core operations and therefore not included in the calculation of the value of a company's operations. Invested capital, the present value of economic profit from continuing value, and the present value of economic profit of the explicit forecast period are all factors that contribute to the value of a company's operations.

The Value of a Company's Operations Equals the Sum of All