When the net present value is negative, the internal rate of return is __________ the cost of capital. Answer greater than greater than or equal to less than equal to The IRR Answer shows the graphical relationship between a projects NPV and cost of capital. is the return that causes the NPV to be zero. is the return that causes the NPV to be positive. measures the firm and projects required rate of return. Which one of the following capital-budgeting evaluation techniques is based on finding a discount rate which causes the net present value to be zero? Answer net present value internal rate of return profitability index payback An examination of a firms opportunities, strengths, threats and weaknesses is often referred to by the following acronym: Answer WOTS. OSTW. SWOT. TWOS. Capital budgeting is Answer the process of identifying, evaluating, and implementing a firms investment opportunities. the process of identifying, evaluating, and implementing a firms objectives. the process of identifying, evaluating, and implementing a firms strategic plans. the process of identifying, evaluating, and implementing a firms financing requirements. The relevant cash flows of a project do not include which one of the following? Answer incremental after-tax cash flows cannibalization effects opportunity costs sunk costs The stage in the capital budgeting process in which projects that are accepted must be executed in a timely fashion is called the _____________ stage. Answer follow-up. selection. identification. implementation. The capital-budgeting process starts with which one of the following stages: Answer development identification implementation selection The corporate planning tool that develops project plans that fit well with the firms plans is often referred to by the following acronym: Answer MOGS. SMOG. OMGS. GOMS. When the net present value for a project is negative, the internal rate of return is _________ the cost of capital. Answer greater than greater than or equal to less than equal to 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% The internal and sustainable growth rate relationships suggest that there are three measurable influences on growth. These include all of the following except: Answer asset policy dividend policy profitability the firms capital structure The initial impact of increasing the use of debt is to: Answer lower the cost of capital lower the weight of the debt component increase the cost of capital lower the cost of retained earnings Which of the following is a different concept from the other three? Answer required rate of return cost of capital discount rate net profit margin When retained earnings are used up and new common stock is issued, we know that the cost of: Answer equity has increased equity has dropped equity is unaffected both common and preferred stock are affected The firms target capital structure is consistent with which of the following? Answer minimum risk maximum earnings per share minimum weighted average cost of capital minimum cost of equity A firms degree of combined leverage can be measured as degree of operating leverage __________ the degree of financial leverage: Answer plus minus times divided by What should be the relation between the target capital structure for a firm and the firms optimum capital structure? Answer Target and optimum capital structures should be the same. Target capital structure is more conservative overall. Target capital structure contains more debt. Target capital structure excludes preferred stock. 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 Of the components shown below, which is least likely to be of value in calculatin…
Looking for a solution written from scratch with No plagiarism and No AI?
WHY CHOOSE US?
We deliver quality original papers |
Our experts write quality original papers using academic databases.We dont use AI in our work. We refund your money if AI is detected |
Free revisions |
We offer our clients multiple free revisions just to ensure you get what you want. |
Discounted prices |
All our prices are discounted which makes it affordable to you. Use code FIRST15 to get your discount |
100% originality |
We deliver papers that are written from scratch to deliver 100% originality. Our papers are free from plagiarism and NO similarity.We have ZERO TOLERANCE TO USE OF AI |
On-time delivery |
We will deliver your paper on time even on short notice or short deadline, overnight essay or even an urgent essay |