It is useful to examine the company valuation process from both an internal and an external perspective. actors and events that can change the firm's value can be classified by whether they affect (1) the firm's cash flows (firm factors), (2) investors' perceptions of the firm's riskiness (investor factors), or (3) the financial marketplace in which the company and its investors operate (market factors). In the following table, indicate whether the factors described fall into the firm, investor, or market factor category. Firm Factor Investor Factor Market Factor The firm's competitive environment Attitude toward risk Business strategy and normal operations