Question

1. Match the items on the left with the correct terms on the right.

Long-term, fundamental price of a company's stock.

      [ Choose ]            market value            discount rate            accounting value            intrinsic value            derivative            cash flow      

Today's price of a company's stock

      [ Choose ]            market value            discount rate            accounting value            intrinsic value            derivative            cash flow      

Used in finance instead of "benefits"

      [ Choose ]            market value            discount rate            accounting value            intrinsic value            derivative            cash flow      

Incorporates risk

[ Choose ]            market value            discount rate            accounting value            intrinsic value            derivative            cash flow

2.

Match the items on the left with the correct terms on the right.

When risk is increasing

      [ Choose ]            undervalued            higher risk            discount rate falls            EMH            discount rate rises            intrinsic value      

When risk is decreasing

      [ Choose ]            undervalued            higher risk            discount rate falls            EMH            discount rate rises            intrinsic value      

says our evaluation of value is about always the same as intrinsic value

      [ Choose ]            undervalued            higher risk            discount rate falls            EMH            discount rate rises            intrinsic value      

The car with the french fries

         [ Choose ]            undervalued            higher risk            discount rate falls            EMH            discount rate rises            intrinsic value      

Answer 1

As per rules I am answering the first 4 subparts of the question

1: Long-term, fundamental price of a company's stock= Intrinsic value

(This represents the value of future cash flows from a stock)

2: Today's price of a company's stock: Market Value

This represents the price at which stock is traded in the markets

3: Used in finance instead of "benefits": Cash flow

Capital budgeting takes into consideration cash flows associated with a project rather than the profits.

4: Incorporates risk: Discount rate

This considers the risks associated and is adjusted accordingly. High risk means higher discount rate and lower present values.