A discounted cash flow analysis calculates the relationship between the price of a company's stock and the cumulative dividends received. The income approach requires an estimate of physical deterioration. The value of a company's intangible assets can be estimated from the balance sheet. Accounting amortization allocates cost over several accounting periods and fixed asset depreciation does the same. The economic considerations that control a licensing transaction are usually those that reflect the profitability of the licensor's business.
Intangible assets represent a highly liquid investment.
Changes in share prices in the stock market produce corresponding changes in a public company's balance sheet. T F Short Answer Questions. Write your answer in the space provided. Since space is limited, plan your answer before you write. FPLC management has asked your opinion about the royalty rate which will be the likely outcome of the licensing negotiations described in question 9.