Valuation SC (1+k) t=1 C.= cash flow to be received at time t k= the investors required rate of return V=the intrinsic value of the assetValuation • Ct = cash flow to be received at time t. • k = the investor’s required rate of return. • V = the intrinsic value of the asset. V = t = 1 n S $Ct (1 + k)t