Equal to present value of the future cash flows

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The value of any asset is equal to the present value of the future cash flows. Knowing this is true, use words to describe how we value stocks and bonds. What approaches can be taken in valuing a firm’s stock when there is no cash dividend payment projected for the future? Why is it easier to use the approach above (of estimating the present value of an asset based on the present value of future cashflows) for a bond than a stock?

Reference no: EM131544402

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