Asked by Victoria Matthews Medina on Apr 24, 2024
Verified
Determining the market price of a financial asset depends principally on identifying the future cash flows associated with its ownership.
Future Cash Flows
The projected cash receipts and payments a company expects to incur over a certain period in the future.
- Describe the method of assessing the worth of securities, with an emphasis on stocks and bonds.
Verified Answer
AR
Arnela Radasli?6 days ago
Final Answer :
True
Explanation :
The market price of a financial asset is based on the expected future cash flows associated with its ownership, such as dividends or interest payments. Therefore, determining these cash flows is key in determining its market price.
Learning Objectives
- Describe the method of assessing the worth of securities, with an emphasis on stocks and bonds.
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