Identify whether the key characteristic describes common stock (CS) or preferred stock (PS)
________ 1. Source of financing which places minimum constraints on the firm
________ 2. Used by young firms receiving investment funds from venture capital firms
________ 3. Potential dilution of earnings and voting power
________ 4. Fixed financial obligation
________ 5. Increases the firm's borrowing power
________ 6. May have cumulative and participating features
________ 7. May be convertible into another type of security
________ 8. Last to receive earnings or distribution of assets in the event of bankruptcy
________ 9. Frequently includes a call feature
1. CS
2. PS
3. CS
4. PS
5. CS
6. PS
7. PS
8. CS
9. PS
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A linkage is a network of activities that generate value by transforming inputs into outputs.
Answer the following statement true (T) or false (F)
Monte Carlo simulation:
A. can be used to estimate a project's market risk, but cannot be used to determine its net present value (NPV). B. uses the probability distributions of variables as inputs to estimate the project's net present value (NPV). C. produces an expected net present value (NPV), an internal rate of return (IRR), and a measure of the project's risk for different scenarios. D. gives an exact outcome for a capital budgeting analysis. E. calculates net present value (NPV) for a change in one key variable.
The percentage-of-credit-sales method (income statement method) is allowed only if amounts do not differ significantly from estimates using the percentage-of-receivables method.
Answer the following statement true (T) or false (F)
Denormalization is the process of transforming relations with variable-length fields into those with fixed-length fields
Indicate whether the statement is true or false