The process of allocating funds among competing investment opportunities is referred to as: Answer
...

Question

The process of allocating funds among competing investment opportunities is referred to as: Answer

capital expenditures

initial cash flow analysis

long-term forecasting

capital budgeting
 
 The ratio between the present value of a project%u2019s cash inflows and the present value of its initial investment is called the: Answer

MIRR.

IRR.

PI.

NPV.

Corporate debt as a percentage of GDP grew from around ______ in 1970 to nearly ______ in 2007. Answer

35%; 50%

40%; 55%

45%; 60%

50%; 60%

Of the components shown below, which is least likely to be of value in calculating the cost of preferred stock? Answer

flotation costs per share

book value of a preferred share

dividends per share

initial market price per share

Which of the following is a correct way to calculate degree of combined leverage? Answer

divide DFL by DOL

multiply DOL by DFL

divide DOL by DFL

add DOL and DFL
 
 In calculating the cost of new common stock using the constant dividend growth model, it is important that the __________
 are subtracted from the price of the stock. Answer

flotation costs

par value

cost of retained earnings

proceeds of the sale
 
 The cost of debt: Answer

is typically higher than the cost of preferred
 stock

must be adjusted to an after-tax cost

is higher than the cost of retained
 earnings

is the lowest component cost because corporations
 can deduct 70 percent of the interest expense

David · Accepted Answer

The process of allocating funds among competing investment opportunities is referred to as: Answer 
  
capital expenditures 
  
initial cash flow analysis 
  
long-term forecasting
capital budgeting
ANS: initial cash flow analysis 
 
The ratio between the present value of a project%u2019s cash inflows and the present value of its 
initial investment is called the: Answer 
  
MIRR. 
  
IRR. 
  
PI. 
  
NPV. 
ANS:

The process of allocating funds among competing investment opportunities is referred to as: Answer capital expenditures initial cash flow analysis long-term forecasting capital budgeting The ratio...

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