BUS 401 Week 3 Quiz  

1.Question :

The appropriate cash flows for evaluating a corporate investment decision are:


2.Question :

The typical corporate investment requires a large cash outlay followed by several years of cash inflows. To make these cash flows comparable, we do which of the following?


3.Question :

If depreciation expense is a noncash charge, why do we consider it when determining cash flows?


4.Question :

The internal rate of return is:


5.Question :

Chapter 7 introduced three methods for evaluating a corporate investment decision. Which of the following is not one of those methods?


6.Question :

In perfect capital markets, the capital structure decision is:


7.Question :

The interplay of the tax advantages of debt and the threat of bankruptcy results in:


8.Question :

Costs associated with bankruptcy include:


9.Question :

All else being equal, as debt replaces equity in a profitable company’s capital structure, which of the following occurs?


10.Question :

Two important aspects of debt financing are its tax advantages and the threat of bankruptcy. As a company shifts to more and more debt financing:



  • Item #: 969

BUS 401 Week 3 Quiz

Price: $10.00
* Marked fields are required.
Qty: *
Reviews (0) Write a Review
No Reviews. Write a Review