a firm uses ther roviding for the e ayout ratio will b True False
Q: Markup and margin as percentages are equal. O True O False
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Q: rmine (a) the current ratio and (b) the
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Q: general, what does a high Tobin's Q value indicate and how reliable does that value tend to be?
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- QUESTION 16 What must occur to make using net cash flows into the firm result in the same estimate of value as using dividends paid out of the firm? OA. the firm must pay an increasing dividend payment each year OB. The cost of equity must be greater than the overall WACC OC. the firm must generate a rate of return on reinvested free cash flow equal to the discount rate used by the investor D. All of the above must occurQUESTION 6 Which of the following statements is true? O A. Companies look for investments with payback periods that are larger than their maximum accepted payback period O B. An investment with a profatibility index less than 1 is profitable and desirable O C.A projected is accepted if the IRR is less than the cost of capital O D. None of the above are trueQUESTION 6 Which of the following statements is true? O A. Companies look for investments with payback periods that are larger than their maximum accepted payback period O B. An investment with a profatibility index less than 1 is profitable and desirable OC.A projected is accepted if the IRR is less than the cost of capital O D. None of the above are true
- which one is correct please confirm? QUESTION 25 The constant growth valuation model approach to calculating the cost of equity assumes that ____. a. earnings, dividends, and stock price will grow at a constant rate b. the growth rate is greater than or equal to ke c. earnings and dividends grow at a constant rate, but stock price growth is indeterminate d. dividends are constantQuestion 19 Which of the following statements / combinations are correct regarding the Optimal Capital structure of a firm? I. II. III. The optimal capital structure always calls for a debt/assets ratio equal to the one that maximizes expected EPS. An increase in financial leverage used by a firm will always increase the risk and the expected rate of return on equity, thus pushing the firm's stock price to fall. A. I and II B. I, II and III Managers at a firm choose a capital structure so that the mix of securities making up the capital structure minimizes the cost of financing the firm's activities. The optimal capital structure maximizes the total value of the overall value of the firm IV. C. I only D. I, II and IV E. II onlyQuestion 6 Which one of the following methods predicts the amount by which the value of a firm will change if a project is accepted? O Payback O Profitability index O Net present value O Internal rate of return O Discounted payback
- Question 17 Which one of these is a characteristic of a sensible payout policy? Set the dividends high even if it means acquiring expensive external financing Increase regular dividends to distribute transitory cash flow increases Do not reject positive NPV projects for the purpose of increasing cash dividends or buying back shares. Set the current regular dividends consistent with a 100 percent payout ratioWhich of the following is likely to increase a firm’s cost of capital? The consideration of a below-average risk project Increasing the proportion of equity in the firm Increasing the proportion of debt in the firm Expectation of lower inflation in the future8. The company’s cost of capital is also known as A. hurdle rate B. leverage rate C. return rate D. coupon rate Only typing answer Please explain step by step without table and graph thankyou
- which one is correct please confirm? QUESTION 39 The constant growth valuation model approach to calculating the cost of equity assumes that ____. a. dividends are constant b. earnings and dividends grow at a constant rate, but stock price growth is indeterminate c. earnings, dividends, and stock price will grow at a constant rate d. the growth rate is greater than or equal to keWhich of the following statements is FALSE? Question content area bottom Part 1 A. Growth rate of the firm is higher, it is more optimal to have a higher level of debt relative to equity in the firm capital structure. B. Growth will affect the optimal leverage ratio even if the firm has positive earnings. C. When examining tax, the optimal debt level is proportional to its current earnings. D. The more unsure we are of EBIT the more chance that interest will exceed EBIT, if the interest expense is highThe value of an ordinary share Select one or more: a. Will fall if future profit forecasts are higher than expected b. Is always at its fundamental value c. Can rise and fall along with market sentiment d. Will rise if a firm introduces some cost saving innovation