Question

Capital budgeting is the process of doing which of the following? Group of answer choices Making...

Capital budgeting is the process of doing which of the following?

Group of answer choices

Making certain adequate capital is available to pay bills when they come due.

Budgeting for public finance projects.

Identifying, evaluating, and implementing a firm’s investment opportunities.

Allocating capital among bonds and stocks.

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer:- Identifying, evaluating, and implementing a firm’s investment opportunities.

Explanation:- Capital budgeting is the process of analyzing cash inflows and outflows of a project to determine whether it is advantageous to undertake the project or not. Ideally, a firm would pursue such opportunities that enhance shareholders value. It is the process of judging whether or not to invest in a particular project / opportunity as all the investment possibilities may not be rewarding. The focus is on project that gives a return more than the cost of financing of such project. So, valuation of a project is done in terms of cost and benefit.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
9. Conclusions about capital budgeting The decision process Before making capital budgeting decisions, finance professionals often...
9. Conclusions about capital budgeting The decision process Before making capital budgeting decisions, finance professionals often generate, review, analyze, select, and implement long-term investment proposals that meet firm-specific criteria and are consistent with the firm’s strategic goals. Companies often use several methods to evaluate the project’s cash flows and each of them has its benefits and disadvantages. Based on your understanding of the capital budgeting evaluation methods, which of the following conclusions about capital budgeting are valid? Check all that...
The decision process Before making capital budgeting decisions, finance professionals often generate, review, analyze, select, and...
The decision process Before making capital budgeting decisions, finance professionals often generate, review, analyze, select, and implement long-term investment proposals that meet firm-specific criteria and are consistent with the firm’s strategic goals. Companies often use several methods to evaluate the project’s cash flows and each of them has its benefits and disadvantages. Based on your understanding of the capital budgeting evaluation methods, which of the following conclusions about capital budgeting are valid? Check all that apply. For most firms, the...
12. Conclusions about capital budgeting The decision process Before making capital budgeting decisions, finance professionals often...
12. Conclusions about capital budgeting The decision process Before making capital budgeting decisions, finance professionals often generate, review, analyze, select, and implement long-term investment proposals that meet firm-specific criteria and are consistent with the firm 's strategic goals. Companies often use several methods to evaluate the project's cash flows and each of them has its benefits and disadvantages. Based on your understanding of the capital budgeting evaluation methods, which of the following conclusions about capital budgeting are valid? Check all...
Which of the following is true about a firm’s capital structure? Group of answer choices A...
Which of the following is true about a firm’s capital structure? Group of answer choices A firm’s current or actual capital structure can differ from its target (or desired) capital structure because issuing new debt and stock can be lumpy. In general, it is better to use the weights in a firm’s Target Capital Structure rather than the weights based on its Balance Sheet Capital Structure when estimating its WACC. A firm’s capital structure is a how a firm is...
Which of the following statements concerning the cash budget is NOT CORRECT? Group of answer choices...
Which of the following statements concerning the cash budget is NOT CORRECT? Group of answer choices Cash budgets include financial items such as interest and dividend payments. Depreciation expense is not explicitly included, but depreciation's effects are reflected in the estimated tax payments. Cash budgets do not include cash inflows from long-term sources such as the issuance of bonds. Capital budgeting decisions have no effect on the cash budget until projects go into operation and start producing revenues.
Which of the following statements is not correct? Group of answer choices The binomial option pricing...
Which of the following statements is not correct? Group of answer choices The binomial option pricing model when taken to the limit becomes the Black-Scholes option pricing model. The Black-Scholes model uses a continuous time discount factor. The binomial option pricing model use a ratio of the range values as the hedge ratio. The Black-Scholes model is related to a heat transfer equation and Brownian molecular motion. The Black Scholes model only estimates the intrinsic value of the call option....
1) Which of the following is NOT true about conjoint analysis? Group of answer choices a....
1) Which of the following is NOT true about conjoint analysis? Group of answer choices a. In a conjoint design, too many attributes may cause fatigue in the respondent and few attributes may not be comprehensive. b. A conjoint study process consists of three stages; the first stage is the designing the study, the second stage is obtaining data from respondents, and the third stage is evaluating product design options. c. Conjoint designs allow the customer to make trade-offs among...
Which of the following is NOT a feature of individual taxation? Group of answer choices Individuals...
Which of the following is NOT a feature of individual taxation? Group of answer choices Individuals pay taxes on wages and salaries, on investment income, and on the profits of proprietorships and partnerships. Individuals face progressive tax rates. Long-term capital gains are taxed at a lower rate than ordinary income. Short-term capital gains are taxed at the same rate as ordinary income. Interest on both corporate and municipal bonds is subject to Federal taxation. Flag this Question Question 82 pts...
1.Which of the following is an example of moral hazard? Group of answer choices There are...
1.Which of the following is an example of moral hazard? Group of answer choices There are likely more cars of low quality than of high quality offered for sale without warranties in the used car market. An individual who eats well and exercises regularly chooses not to purchase health insurance. An individual drives less cautiously after obtaining automobile insurance. A car salesman offers a full warranty on a used car for 90 days. 2. The possible returns to a shareholder...
The essence of capital budgeting and resource allocation is a search for good investments in which...
The essence of capital budgeting and resource allocation is a search for good investments in which to place the firm’s capital. The process can be simple when viewed in purely mechanical terms, but a number of subtle issues can obscure the best investment choices. The capital-budgeting analyst, therefore, is necessarily a detective who must winnow bad evidence from good. Much of the challenge is in knowing what quantitative analysis to generate in the first place. Suppose you are a new...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT