Which of the following statements is correct?
A. Capital budgeting projects with fairly risky cash flows should be evaluated using relatively high discount rates (required rates of return).
B. If managers want to maximize the firm's stock value, they should not be concerned with risk when making capital budgeting decisions.
C. If a firm evaluates all capital budgeting projects using its existing required rate of return, its overall risk, as measured by its beta coefficient, probably will decline over time.
D. If a firm has a beta coefficient that is less than 1.0, its existing required rate of return will be negatively correlated with the returns on most of the capital budgeting projects it evaluates in the future.
E. A firm should use a different approach to estimate the riskiness of mutually exclusive projects than it uses to estimate the riskiness of independent projects.
Answer: A
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Which of the following statements is correct?
A. Stock splits and stock dividends both reduce the market price of a share and the par value of a share. B. Stock splits and stock dividends both reduce the market price of a share, but only stock splits reduce the par value of a share. C. Stock splits and stock dividends both reduce the market price of a share and reduce Retained Earnings. D. Stock splits and stock dividends both reduce the market price of a share, but only stock dividends reduce the par value of a share.
Fashion Industries Corporation owns assets in Vietnam, a country in Asia. The gov-ernment of Vietnam wants to nationalize all assets owned by foreign firms and investors. What can Fashion Industries do? Can it at least obtain payment for the assets?
The order or bearer character of the paper determines how it may be: A) assigned
B)sold.? C)negotiated.? D)accepted.
What is the process of dividing up assets and allocating them to resource providers (creditors and investors)?
A. Stock repayment B. Utilization C. Liquidation D. Equity distribution