Present Value and Capitalization

The market value of an asset or potential investment project is most specific to rise when typical investors expect: (w) after-tax rates of return by investing to exceed the interest rate applicable for assets or investments along with similar risks, liquidity, and maturity structures. (x) quick technological advances for a good for which consumers have relatively price inelastic demands. (y) other firms into the industry to migrate to other markets. (z) increases in the income elasticity of demand for the conclude outputs produced.

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