Which of the following is NOT one of the ways whereby the value of a firm can be broken down into two or more subparts?
A) (1 ) Nonoperating assets and (2 ) operating assets plus the present value of the depreciation tax shield.
B) (1 ) New product line and (2 ) base business.
C) (1 ) The present value of continuing-value cash flow and (2 ) the present value of the cash flow from the explicit forecast period.
D) (1 ) The present value of economic profit from continuing value,(2 ) the present value of economic profit of the explicit forecast period,and (3 ) invested capital.
Correct Answer:
Verified
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