Question 42 1 pts By accepting all projects with a positive Net Present Value (NPV), financial managers are: O Maximizing shareholder value by selecting projects which return more than the firm's risk-adjusted cost of capital. O Maximize shareholder value by selecting projects which have profit margins above the company's current profit margins. Maximize shareholder value by increasing revenue and market-share. O Maximize shareholder value by ensuring a short payback period.
e Cloud Question 44 The drawbacks of using the payback method to evaluate investments are: 1 pts O The payback method ignores time value and cash flows after payback is achieved. O The payback method is not easy to calculate and it is not well understood. O The payback method ignores the initial cash outlay and cash flows after payback is achieved. O The payback method can have multiple solutions and it depends whether you are borrowing or lending
Question 43 Systematic risk is also referred to as O Market risk, nondiversifiable risk O Market risk, diversifiable risk O Unique risk, nondiversifiable risk O Unique risk, diversifiable risk O None of the options 1 pts
Question 42 1 pts By accepting all projects with a positive Net Present Value (NPV), financial managers are: O Maximizin
-
- Site Admin
- Posts: 899603
- Joined: Mon Aug 02, 2021 8:13 am