Question: 3 4 The concept of optimum capial structuide is based on the assumption that the prudent use of debt can lower the firms 3 6
The concept of optimum capial structuide is based on the assumption that the prudent use of debt can lower the firms
The optimum capilal structure is the ane that?
Preferred stock is considered as debt to the exteri ingit False catrogers
The capitar budjeteng process must follow an idenally presentied order because there are many steps and elements in the whole procoss of planing capital expenditures true of Fatise
The nominal rate of interest equals the effective rale of wnterest ony if hiterest is compounded sermannually, True or False information and market prices adjust slowly to new intormation. True or False stock because retained earnings do not involve flotation costs. True or False
The term annuty usually refersto soriesolann walpayments recelpts of an equal amount, but it may also apply to a payment? schedule with various intervals, fe such as dayntervaior month interval. True or False
A project with an investment of $ has net cash flowes of $ and $ for each of the noxt three years. Compute the average rate of return for the project?
A company has debt with a market value of $ and commorn equity with a market value of $ The component costs of the capital structure for the company we percent for bond after taxes and percerit tor
The net present value method, the internat rate of return method and the fofitabily index consider the time value of money True or False
The value of any securty is equal to the compound value of cash flows expected to be received by the anvestor. True or False.
The opportunity cost is the rate of return that the fur dy could eamn if
Diacount rate consists of the rale of return on a riskless investment play a premium based on
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