d. None of the above are true. The following information relates to questions 10 - 12:...

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d. None of the above are true. The following information relates to questions 10 - 12: Market State Probability Rm Cash Flow Boom 0.2 30% 7 000 Positive 0.4 14% 4 000 Negative Bust 0.3 4% 1 500 0.1 -5% 600 R186 Terminal growth (g) 8.50% 5.80% 10. The cash flow beta is closest to: a. 19 864; b. 3510; c. 227; d. None of the above are true. 11. The certainty equivalent cash flow is closest to: a. 19 864; b. 3510; c. 227; d. 2 755. SCHOOL OF ECONOMIC AND BUSINESS SCIENCES BUSE 3014/3015 APRIL 2018 TEST | PAPER 2-Capital Budgeting 12. The present value of the certainty equivalent cash flows assuming a perpetual growth rate: a. 47 502; b. 102 043; c. 32 414; d. None of the above. d. None of the above are true. The following information relates to questions 10 - 12: Market State Probability Rm Cash Flow Boom 0.2 30% 7 000 Positive 0.4 14% 4 000 Negative Bust 0.3 4% 1 500 0.1 -5% 600 R186 Terminal growth (g) 8.50% 5.80% 10. The cash flow beta is closest to: a. 19 864; b. 3510; c. 227; d. None of the above are true. 11. The certainty equivalent cash flow is closest to: a. 19 864; b. 3510; c. 227; d. 2 755. SCHOOL OF ECONOMIC AND BUSINESS SCIENCES BUSE 3014/3015 APRIL 2018 TEST | PAPER 2-Capital Budgeting 12. The present value of the certainty equivalent cash flows assuming a perpetual growth rate: a. 47 502; b. 102 043; c. 32 414; d. None of the above.