Real rate expected cash flows and nominal rate expected cash flows must be______________?
A. Accelerated
B. Equal
C. Different
D. Inflated
Finance Mcqs
Real interest rate and real cash flows do not include_____________?
Real interest rate and real cash flows do not include_____________?
A. Equity effects
B. Debt effects
C. Inflation effects
D. Opportunity effects
Net investment in operating capital is subtracted from net operating profit after taxes to calculate___________?
Net investment in operating capital is subtracted from net operating profit after taxes to calculate___________?
A. Relevant inflows
B. Free cash flow
C. Relevant outflows
D. Cash outlay
In cash flow estimation, depreciation is considered as________________?
In cash flow estimation, depreciation is considered as________________?
A. Cash charge
B. Non cash charge
C. Cash flow discounts
D. Net salvage discount
Rate of return which is required to satisfy stockholders and debt holders is classified as__________?
Rate of return which is required to satisfy stockholders and debt holders is classified as__________?
A. Weighted average cost of interest
B. Weighted average cost of capital
C. Weighted average salvage value
D. Mean cost of capital
In cash flow estimation and risk analysis, real rate will be equal to nominal rate if there is__________?
In cash flow estimation and risk analysis, real rate will be equal to nominal rate if there is__________?
A. No inflation
B. High inflation
C. No transactions
D. No acceleration
Weighted average cost of debt, preferred stock and common equity is classified as_____________?
Weighted average cost of debt, preferred stock and common equity is classified as_____________?
A. Cost of salvage
B. Cost of interest
C. Cost of taxation
D. Cost of capital
In cash flow estimation, depreciation shelters company’s income from_______?
In cash flow estimation, depreciation shelters company’s income from_______?
A. Expansion
B. Salvages
C. Taxation
D. Discounts
Nominal interest rates and nominal cash flows are usually reflected the____________?
Nominal interest rates and nominal cash flows are usually reflected the____________?
A. Inflation effects
B. Opportunity effects
C. Equity effects
D. Debt effects
Relevant cash flow which company expects when its will implement project is classified as_____________?
Relevant cash flow which company expects when its will implement project is classified as_____________?
A. Irrelevant cash flow
B. Relevant cash flow
C. Incremental cash flow
D. Decrease cash flow