Corporate Finance Flashcards: Stock Types & Investment Evaluation

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Finance - Personal Finance

andrsonztdc Created by 10 mon ago

Cards in this deck(37)

Which type of stock denotes ownership in a firm and provides voting and preemptive rights?

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What type of stock provides cash dividends but seldom voting rights, with dividends determined at issuance?

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What are the types of common stocks based on class structure?

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What is an advantage of common stocks when comparing firms against their industry?

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What is a disadvantage of common stock analysis related to firm differences?

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What is the characteristic of dividends in a firm valued as a growing perpetuity?

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How can dividend payers with irregular growth be priced?

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What financial metric is used to measure the amount made from investing in a project?

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What is the accept/reject rule for a project based on NPV?

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What is an advantage of using the discount rate in project evaluation?

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What is a disadvantage of the discount rate assumption in NPV analysis?

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What does the payback period measure in a project?

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What is the rule for accepting a project based on its payback period?

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What is an advantage of using the payback period in project evaluation?

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What is a disadvantage of the payback period method?

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What does the discounted payback period measure?

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What is the rule for accepting a project based on its discounted payback period?

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What is an advantage of the discounted payback period method?

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What is a disadvantage of the discounted payback period method?

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What does the average accounting return measure?

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What is the rule for accepting a project based on the average accounting return?

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What is an advantage of using the average accounting return?

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What is a disadvantage of the average accounting return method?

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What does the internal rate of return calculate?

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What is the rule for accepting a project based on the internal rate of return?

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What is the relationship between IRR and NPV for project acceptance?

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What is an advantage of using the internal rate of return?

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What is a disadvantage of the internal rate of return method?

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What is an advantage of the modified internal rate of return?

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How are incremental cash flows calculated?

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What are indirect effects of incremental cash flows?

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What are sunk costs in project evaluation?

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What is an opportunity cost in financial decision-making?

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How is working capital calculated?

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What does terminal cash flow include?

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What components make up total cash flows in a project?

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How do financing decisions affect project selection?

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