More than one answer, mark all that apply

2. How is an economic asset such as a stock, bond or firm valued?

a. Identify the size, timing, and risk of future cashflows available to the owner and discount these to the present.

b. Add up the book value of all the assets on the balance sheet.

c. Add up the book value of all of the assets on the balance sheet and subtract he sum of the liabilities.

d. Add up all cash flows that an owner will receive.