Question 51
Compounding is the process of finding the present value of some future amount.
Select one:
True
False
Question 52
A growth stock is a stock that results in a high return with relatively low levels of risk.
Select one:
True
False
Question 53
The pure play approach:
Select one:
a. Cannot be used if the firm has preferred stock outstanding.
b. Should be used only if a firm has more than three divisions.
c. Can be used to find the cost of capital for a division.
d. Is most useful when each division makes a multitude of different products.
e. Is easier to implement than the subjective approach.
Question 54
Your firm seeks to obtain a short-term loan from a local bank. The banker quotes you a rate of 6%. This is a nominal rate.
Select one:
True
False
Question 55
A project which has a discounted payback period longer than its life also has a positive NPV.
Select one:
True
False
51 Compounding is the process of finding the present value of some future amount :- This is False
52 A growth stock is a stock that results in a high return with relatively low levels of risk. :- False
53 The Pure Play Approach is :- Can be used to find the cost of capital for a division
54 Your firm seeks to obtain a short-term loan from a local bank. The banker quotes you a rate of 6%. This is a nominal rate. :- true
55 A project which has a discounted payback period longer than its life also has a positive NPV :- This is False .
Get Answers For Free
Most questions answered within 1 hours.