Indicate whether each of the following statements is true or false.The further into the future a cash receipt is expected to occur, the higher is its present value.The return on investment measures the compensation a company expects to receive from investing in capital assets.Most companies use their cost of capital to estimate the minimum return on investment required from capital investments.When a company invests in capital assets, it sacrifices present dollars for the opportunity to receive future dollars.The required rate of return on a capital investment is also referred to as the hurdle rate or discount rate.
What will be an ideal response?
The further into the future a cash receipt is expected to occur, the higher is its present value. F
The return on investment measures the compensation a company expects to receive from investing in capital assets. T
Most companies use their cost of capital to estimate the minimum return on investment required from capital investments. T
When a company invests in capital assets, it sacrifices present dollars for the opportunity to receive future dollars. T
The required rate of return on a capital investment is also referred to as the hurdle rate or discount rate. T
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Helena Corporation declared a 2-for-1 stock split on 8,000 shares of $6 par value common stock. If the market price of the stock had been $25 a share before the split, the par value, number of shares, and approximate market value after the split would be: ParValueNo. of SharesMarketValueA.$6.00 16,000 $12.50 B.$6.00 8,000 $25.50 C.$3.00 16,000 $12.50 D.$3.00 16,000 $25.00
A. Choice A B. Choice B C. Choice C D. Choice D
An IRS-allowed reduction in your income for yourself, your spouse, and any dependents that is subtracted before you compute your taxes is called a(n)
A) itemized exemptions. B) standard exemptions. C) marital exemptions. D) personal exemptions.
Compared to interest rates on long-term U.S. government bonds, interest rates on ________ fluctuate more and are lower on average
A) medium-quality corporate bonds B) low-quality corporate bonds C) high-quality corporate bonds D) three-month Treasury bills E) none of the above
A process in which information flows from sender to receiver, with no feedback loop, is referred to as ________ communication.
A) syntactic B) informal C) one-way D) decentralized E) intrapersonal