17. What value is determined by stopping estimation of future cashflows and then computing the firm's value at that point in time? a. Perpetual value b. Terminal value c. Liquidation value d. None of the above 18. When valuing research assets, estimating how long it will take to convert them into commercial products is known as: a. Depreciable life b. Amortizable life c. Convertible life d. Research and development factor 19. The difference between nominal cash flows and real cash flows is that: Nominal cash flows incorporate expected inflation and consequently must be in a specific currency Real cash flows do not have an expected inflation component and thus reflect changes in the number of units sold and real pricing power Real cash flows must be calculated in the quarter following an earnings release to account for changes in interest rates A and B B and C a. b. c. d. e. 20. What is one of the tradeoffs of updating earnings frequently? Not all public companies are required to release quarterly reports Not all items in the annual report are revealed in the quarterly report Companies have little time to prepare their earnings reports a. b. c. d. None of the above a Be net of all taxes paid to ensure a b. 1. Base operating income should: consistent base Reflect continuing operations Not include any items that are one-time c. or extraordinary A and B Band C e