Finance 101chap010 - Study guides, Class notes & Summaries

Chapter 10 Valuation and Rates of Return True / False Questions 1. The valuation of a financial asset is based on the concept of determining the present value of future cash flows. True False 2. The prices of financial assets are based on the expected value of future cash flows, discount rate, and past dividends. True False 3. The market determined required rate of return is also called the discount rate. True False 4. The discount rate depends on the marke...