Which of the following are key inputs to determining the value of an asset?
I. the required rate of return
II. future cash flows
III. current stock price
IV. timing of future cash flows
A) I and II only
B) I and III only
C) I, II and IV only
D) II, III and IV only

Question

Quizplus · Accepted Answer

The value of an asset is determined by the required rate of return, future cash flows, and the timing of those future cash flows. The current stock price is not a direct input in valuation but rather a result of these factors.

Which of the Following Are Key Inputs to Determining the Value