Investors who follow a fundamental analysis approach
A)determine the value the company's assets would yield if sold individually.
B)estimate the value of a stock by assessing the amount,timing,and uncertainty of future cash flows that will accrue to the issuing company.
C)assess the company's ability to meet its debt-related financial obligations.
D)assess the company's ability to raise additional cash by selling assets,issuing stock,or borrowing more.

Question

Quizplus · Accepted Answer

Fundamental analysis involves assessing a company's financial and economic characteristics to determine its intrinsic value. This includes estimating the value of a stock by assessing the amount, timing, and uncertainty of future cash flows that will accrue to the company. Evaluating a company's ability to meet its debt-related financial obligations (C) and ability to raise additional cash (D) are important aspects of fundamental analysis, but they do not directly determine a stock's value. A (determining the value of a company's assets if sold individually) is more closely related to a liquidation valuation approach, which is not typically a focus of fundamental analysis.

Investors Who Follow a Fundamental Analysis Approach