Question 8 The business with a net present value (NPV) of a firm equal to 50 is an example of a fairly valued business. (All else equal.) True False

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter7: Analysis Of Financial Statements
Section: Chapter Questions
Problem 6P
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Question 8
The business with a net present value (NPV) of a firm equal to 50 is an example of a fairly valued
business. (All else equal.)
True
False
Previous
Question 9
All else being equal, a company with a large EV/Capital ratio will tend to have a large return on
capital (ROC).
True
False
Transcribed Image Text:Question 8 The business with a net present value (NPV) of a firm equal to 50 is an example of a fairly valued business. (All else equal.) True False Previous Question 9 All else being equal, a company with a large EV/Capital ratio will tend to have a large return on capital (ROC). True False
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