FIN 419 Week 2 DQ 1

FIN 419 Week 2 DQ 1


J
Asked by 2 years ago
0 points

What are the three key inputs to the valuation model?

As per Gitman (2006), there are three main inputs to the valuation model: Cash flows, timing, and measure of danger.

Cash flows: "The value of any asset depends on the cash flow" (Gitman, 2006).

Timing: "The combination of the cash flow and its timing fully defines the return expected from the asset" (Gitman, 2006).

Measure of risk: "The level of risk associated with a given cash flow can significantly affect its value" (Gitman, 2006).

How would you determine the valuation of an asset?

"?the value of any asset is the current value of all future cash flows it is anticipated to make over the applicable time period. The time period could be any duration, even infinity. The value of an asset is consequently determined by discounting...

FIN 419
jacob

1 Answer

J
Answered by 2 years ago
0 points

Oh Snap! This Answer is Locked

FIN 419 Week 2 DQ 1

Thumbnail of first page

Excerpt from file: Whatarethethreekeyinputstothevaluationmodel? AsperGitman(2006),therearethreemaininputstothevaluationmodel:Cashflows, timing,andmeasureofdanger. Cashflows:Thevalueofanyassetdependsonthecashflow(Gitman,2006). Timing:Thecombinationofthecashflowanditstimingfullydefinesthereturn

Filename: fin-419-week-2-dq-1-25.doc

Filesize: < 2 MB

Downloads: 0

Print Length: 2 Pages/Slides

Words: NA

Your Answer

Surround your text in *italics* or **bold**, to write a math equation use, for example, $x^2+2x+1=0$ or $$\beta^2-1=0$$

Use LaTeX to type formulas and markdown to format text. See example.

Sign up or Log in

  • Answer the question above my logging into the following networks
Sign in
Sign in
Sign in

Post as a guest

  • Your email will not be shared or posted anywhere on our site
  •  

Stats
Views: 1
Asked: 2 years ago

Related