Projects which are mutually exclusive but different on scale of production or time of completion then the:
A. External return method
B. Net present value of method
C. Net future value method
D. Internal return method
If stock market price is higher than strike price so call option:
A. Price will be lower
B. Rate will be higher
C. Price will be higher
D. Rate will be lower
Current option price is added to present value of portfolio for calculating:
A. Future value of portfolio
B. Current value of stock
C. Future value of stock
D. Present value of portfolio
Rate of required return by debt holders is used for estimation the:
A. Cost of debt
B. Cost of equity
C. Cost of internal capital
D. Cost of reserve assets
In retention growth model, payout ratio is subtracted from one to calculate:
A. Present value ratio
B. Future value ratio
C. Retention ratio
D. Growth ratio
Interest rates, tax rates and market risk premium are factors which an/a:
A. Industry cannot control
B. Industry cannot control
C. Firm must control
D. Firm cannot control
Double declining balance method and sum of years digits are included in:
A. Yearly method
B. Single methods
C. Double methods
D. Accelerated methods
Real rate expected cash flows and nominal rate expected cash flows must be:
A. Accelerated
B. Equal
C. Different
D. Inflated
Real interest rate and real cash flows do not include:
A. Equity effects
B. Debt effects
C. Inflation effects
D. Opportunity effects
Net investment in operating capital is subtracted from net operating profit after taxes to calculate:
A. Relevant inflows
B. Free cash flow
C. Relevant outflows
D. Cash outlay
