The ________ method is the most intuitive but least sophisticated capital budgeting technique presented by the author
A) net present value
B) internal rate of return
C) payback
D) modified internal rate of return
C
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Money market mutual funds have the protection of FDIC insurance
Indicate whether the statement is true or false
Jake begins his presentation on malnutrition by giving an estimate of the amount of food that is wasted every day in the country. This makes the audience more attentive and responsive throughout Jake's presentation. In the given scenario, Jake uses _____ to open his presentation.
A. audience involvement B. a startling statistic C. an engaging question D. a simile
The market value of Fords' equity, preferred stock, and debt are $6 billion, $2 billion, and $15 billion, respectively. Ford has a beta of 1.5, the market risk premium is 7%, and the risk-free rate of interest is 4%. Ford's preferred stock pays a dividend of $3 each year and trades at a price of $27 per share. Ford's debt trades with a yield to maturity of 8.5%. What is Ford's weighted average cost of capital if its tax rate is 30%?
A) 9.56% B) 8.87% C) 8.63% D) 10.13%
In general, investors are attracted to stock markets in countries that allow very limited voting rights for shareholders
a. True b. False