Asked by Clara McNulty on Jul 07, 2024
Verified
In addition to valuing earnings generated from existing assets,the market values growth opportunities.
Growth Opportunities
Prospects or opportunities for a business to expand its operations, increase sales, and enhance profitability.
Existing Assets
Assets that are already owned by a company, including both tangible assets like property and equipment, and intangible assets like patents and trademarks.
- Gain an understanding of the core ideas behind business and stock appraisal.
Verified Answer
JJ
Jessica JantzenJul 08, 2024
Final Answer :
True
Explanation :
It is true that the market values growth opportunities along with the earnings generated from existing assets. This is because growth opportunities represent the potential for future earnings and expansion of the business, which can lead to a higher valuation of the company in the eyes of investors. In other words, investors are willing to pay more for a company that has growth potential and promising prospects for future earnings.
Learning Objectives
- Gain an understanding of the core ideas behind business and stock appraisal.
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