Prada has nine million shares outstanding, generates free cash flows of $ 40 million each year and has a cost of capital of 10%. It also has $30 million of cash on hand
Prada wants to decide whether to repurchase stock or invest the cash in a project that generates free cash flows of $5 million each year. Should Prada invest or repurchase the shares?
A) indifferent between options
B) repurchase
C) invest
D) cannot say for sure
Answer: C
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All of the following are designed to control exposures from subversive threats except
a. firewalls b. one-time passwords c. field interrogation d. data encryption
Which inventory management system in retailing corresponds to a just-in-time inventory management system?
a. automatic reordering b. computer-based UPC scanning c. economic order quantity d. quick response inventory planning
Most states follow the Doctrine of Ancient Lights
Indicate whether the statement is true or false
Which of the following would NOT cause an error in the physical inventory count on December 31?
A) Counting inventory purchased that was shipped by the supplier FOB destination on December 31 B) Double counting an aisle of product C) Counting inventory purchased that was shipped by the supplier FOB shipping point on December 31 D) Forgetting to tag a section of inventory