Why is excess cash a non operating asset (NOA) Why does it make sense to add the value of excess cash to the value of the discounted cash flows when we use the W ACC or FCFE approach to value a business ...

Excess cash is a nonoperating asset because by definition this cash ca ...

Why is excess cash a non-operating asset (NOA)? Why does it make sense to add the value

Question:

Why is excess cash a non-operating asset (NOA)? Why does it make sense to add the value of excess cash to the value of the when we use the W ACC or FCFE approach to value a business?

Discounted Cash Flows
What is Discounted Cash Flows? Discounted Cash Flows is a valuation technique used by investors and financial experts for the purpose of interpreting the performance of an underlying assets or investment. It uses a discount rate that is most...