Estimates of a stock's intrinsic value calculated with the free cash flow methodology depend most critically on _______.
A. the terminal value used
B. whether one uses FCFF or FCFE
C. the time period used to estimate the cash flows
D. whether the firm is currently paying dividends
A. the terminal value used
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The Vice President of Finance at Kramerica, Inc. has determined a capital investment budget of $8,000,000 for the next year. Unfortunately, this amount is not sufficient to accept all positive NPV projects available to the firm, which are listed in the table below.
1. Help the Vice President of Finance to choose which set of investments should be accepted.
a) Using the Solver, determine which projects should be accepted if the firm’s goal is to maximize shareholders wealth, subject to the maximum investment constraint. (Note: Make sure to set the Solving Method to Simplex LP.)
b) Now assume that the Vice President of Finance has informed you that the capital budget has been cut to $4,000,000 for the next year, and that at least one project must be accepted for each region. Change your Solver constraints to account for this new information and find the new solution.
c) In addition to the constraints from part b, the Vice President of Finance has now informed you that projects 3, 5, and 8 are mutually exclusive, so, at most, one of them can be selected. Change your Solver constraints to account for this new information and find the new solution.
When you get married, by law you must have joint credit card accounts instead of individual accounts
Indicate whether this statement is true or false.
Most IT security analysts recommend placing IT security functions within the IT department
Indicate whether the statement is true or false.
The chi-squared distribution is used in:
a. a goodness-of-fit test. b. a test of a contingency table. c. describing a population having more than two categories. d. All of these choices are true.