Beta which is estimated as regression slope coefficient is classified as:
A. Historical beta
B. Market beta
C. Coefficient beta
D. Riskier beta
In cash flow estimation, depreciation is considered as:
A. Cash charge
B. Non cash charge
C. Cash flow discounts
D. Net salvage discount
Rate of return which is required to satisfy stockholders and debt holders is classified as:
A. Weighted average cost of interest
B. Weighted average cost of capital
C. Weighted average salvage value
D. Mean cost of capital
In cash flow estimation and risk analysis, real rate will be equal to nominal rate if there is:
A. No inflation
B. High inflation
C. No transactions
D. No acceleration
Weighted average cost of debt, preferred stock and common equity is classified as:
A. Cost of salvage
B. Cost of interest
C. Cost of taxation
D. Cost of capital
In cash flow estimation, depreciation shelters company’s income from:
A. Expansion
B. Salvages
C. Taxation
D. Discounts
Nominal interest rates and nominal cash flows are usually reflected the:
A. Inflation effects
B. Opportunity effects
C. Equity effects
D. Debt effects
Relevant cash flow which company expects when its will implement project is classified as:
A. Irrelevant cash flow
B. Relevant cash flow
C. Incremental cash flow
D. Decrease cash flow
Cash flows that could be generated from an owned asset by company but not use in project are classified as:
A. Occurred cost
B. Mean cost
C. Opportunity costs
D. Weighted cost
Required rate of return in calculating bond’s cash flow is also classified as:
A. Going rate of return
B. Yield
C. Earning rate
D. Both A and B
