Which of the following statements regarding the intrinsic value of a company is correct?
A. It can be calculated as book value plus the present value of future expected dividends, discounted at the cost of equity capital.
B. It can be calculated as present value of future expected dividends, discounted at the cost of debt.
C. It can be calculated as present value of future expected residual income, discounted at the cost of equity capital.
D. It can be calculated as book value plus the present value of future expected residual income, discounted at the cost of equity capital
Answer: D
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