Sophia finance course Study guides, Class notes & Summaries

1 What is one disadvantage of NPV as a capital budget method? It can be misleading if inputs like cash flow turn out to be wrong. It is rarely used, so there is disagreement as to what an adequate NPV is. It cannot be used to compare investments with different upfront costs. It does not deliver an overall picture of the gain or loss of implementing a project. CONCEPT Net Present Value 2 Select a reason why a company would want to go public. To increase direct oversight from investors ...

1 When performing capital budgeting and considering replacement projects, one factor that must be considered is the potential of equipment that is no longer needed. • taxation • depreciation • salvage value • sunk costs CONCEPT Cash Flow Analysis and Other Factors 2 According to the residual dividend model, what takes priority over distributing dividends? • Paying off debt • Increasing share price • Establishing a target payout ratio • Financing planned project...

1 When performing capital budgeting and considering replacement projects, one factor that must be considered is the potential of equipment that is no longer needed. • taxation • depreciation • salvage value • sunk costs CONCEPT Cash Flow Analysis and Other Factors 2 According to the residual dividend model, what takes priority over distributing dividends? • Paying off debt • Increasing share price • Establishing a target payout ratio • Financing planned project...

Sophia Finance Milestone 1a - Questions and Answers (Complete Solutions)|Sophia Finance Milestone 1a - Questions and Answers (Complete Solutions)|Sophia Finance Milestone 1a - Questions and Answers (Complete Solutions)

Sophia Finance Milestone FINAL - Questions and Answers (Complete Solutions)|Sophia Finance Milestone FINAL - Questions and Answers (Complete Solutions)

Sophia Finance Milestone 4 - Questions and Answers (Complete Solutions)|Sophia Finance Milestone 4 - Questions and Answers (Complete Solutions)

Sophia Finance Milestone 4a - Questions and Answers (Complete Solutions)|Sophia Finance Milestone 4a - Questions and Answers (Complete Solutions)

Sophia Finance Milestone 3a - Questions and Answers (Complete Solutions)|Sophia Finance Milestone 3a - Questions and Answers (Complete Solutions)

Principle of Finance Milestone 3 Sophia Course 1 You invest $1,000 in a stock that has a 15% chance of a 1% return, a 60% chance of a 5% return and a 25% chance of a 7% return. What is your expected return after one year? · 4.3% · 4.9% · 4.5% · 5.3% CONCEPT Expected Return 2 Which of the following credit ratings would make a country or company have the easiest time raising capital? · CC · A · BBB · AAA CONCEPT The Impact of News of Expected Returns 3 A security that falls above the secur...