Value additivity Samenvattingen, Aantekeningen en Examens

Corporate Finance Exam Prep Guide |Graded A+| LATEST!! Valuation principle *Ans* State that we can use current market prices to determine the value today of the costs and benefits associated with a decision Net present value rule *Ans* The main tool of project evaluation where we weigh the costs and benefits at different points in time and apply this information to decisions Time value of money *Ans* The difference in value between money today and money in the future i.e. investment ...

Artificial neural networks (ANN) an alternative to MRA for calibrating mass appraisal models sale price not a suitable independent variable for a residential sales comparison model statistical software packages provide the greatest modeling features and flexibility slope function regression coefficients in excel are generated by ___ weak positive correlation correlation coefficient of 0.15 dividing a regression coefficient by its standard error how a t-va...

Default Risk - Risk that a borrower will not make promised payments Liquidity Risk - Risk of recieving less than fair value for an investment if it must be sold for cash quickly Required Interest Rate on A Security - = Nominal Interest Rate + Default Risk Premium + Liquidity Premium + Maturity Risk Premium Real Risk Free Rate / Nominal Risk Free Rate - - Single period interest rate for a completely riskfree security with no inflation added - Nominal = Real Risk Free Rate + Expected Infla...

Define: Linear Programming (LP) - correct answer a mathematical programming technique to solve questions with linear relationship by developing linear programming models showing linear algebraic relationships What method do we use to get optimization? - correct answer Linear Programming Define: Linear Programming Models - correct answer a model that s...

Capital Budgeting - ANSWER-the process of planning and managing a firm's long-term investments (accepting or rejecting projects). Net Present Value - ANSWER-The difference between the sum of the present values of a project's future cash flows and the initial cost of the project. Accept a Project if the NPV is ______ than zero. Reject a project if the NPV is _____ than zero. - ANSWER-greater; less. The NPV rule Accepting positive NPV project benefits the ____. - ANSWER-Stockholder ...

A priori probability - Answer- A probability based on logical analysis rather than on observation or personal judgment. abnormal return - Answer- The amount by which a security's actual return differs from its expected return, given the security's risk and the market's return. absolute advantage - Answer- A country's ability to produce a good or service at a lower absolute cost than its trading partner. Absolute dispersion - Answer- The amount of variability present without comparis...

According to Modigliani and Miller Proposition II, the firm's expected return on assets depends on several factors including the firm's capital structure. T or F - ANSWER-FALSE According to Modigliani and Miller Proposition II, since the expected rate of return on debt is less than the expected rate of return on equity, the weighted average cost of capital declines as more debt is issued. T or F - ANSWER-FALSE Financial leverage increases the expected return and risk of the shareholder. ...

Default Risk - Answer- Risk that a borrower will not make promised payments Liquidity Risk - Answer- Risk of recieving less than fair value for an investment if it must be sold for cash quickly Required Interest Rate on A Security - Answer- = Nominal Interest Rate + Default Risk Premium + Liquidity Premium + Maturity Risk Premium Real Risk Free Rate / Nominal Risk Free Rate - Answer- - Single period interest rate for a completely risk-free security with no inflation added - Nomina...

CPH Sample Exam 128 Questions with Verified Answers Which one of the following items does not represent the value of biostatistics in the assessment of health problems of the population and determine their extent? (A) Finding patterns in the collected data (B) Summarizing and presenting the information to best describe the target population (C) Deciding what information to gather to help identify the health problems (D) Accounting for possible inaccuracies in responses and measurements ...

TRUE/FALSE 1. The accounting profession has been regulated by Congress since the 1880s when it became clear that accounting was an important instrument in America for conducting business. ANSWER: F 2. The SEC was created by Congress to replace the AICPA’s standard-setting group. ANSWER: F 3. The SEC is legally empowered to regulate accounting principles. ANSWER: T 4. Most of the responsibility for establishing accounting principles has remained with the private sector ...