Question 4 Not yet answered Marked out of 1.00 Flag question Question text Which one of the following statements weakens

[answerhappygod]

Question 4
Not yet answered
Marked out of 1.00
Flag question
Question
text
Which one of the following statements weakens the role of NPV as
a sole criteria for selecting a project?
a.
Monte Carlo simulations make traditional appraisal criteria
redundant.
b.
Growing pressure from shareholders and other stakeholders around
issues involving strategy, risk, and uncertainty, has highlighted
the importance of sustainability in capital investment decision
making.
c.
The payback method seems to be an enduring technique still used
by many organizations.
d.
None of the above.
Question 5
Not yet answered
Marked out of 1.00
Flag question
Question
text
Income
Assets
Sales
$550
Net working capital
$180
Cost of goods sold
275
Fixed assets
1500
Selling, general and admin expenses
75
Depreciation
360
EBT
$200
Tax (20%)
$40.0
Other assets
110
Net Income
$160
Assuming the cost of capital is 10%, determine the
economic profit.
a.
$50
b.
$14
c.
$17
d.
Can not be determined
Question 6
Not yet answered
Marked out of 1.00
Flag question
Question
text
Other things held constant, if a bond indenture contains a call
provision, the yield to maturity that would exist without such a
call provision will generally be ____ the YTM with it.
a.
The same as
b.
Lower than
c.
Higher than
d.
Either higher or lower, depending on the level of call premium,
than
Question 7
Not yet answered
Marked out of 1.00
Flag question
Question
text
Which ONE of the following presents a rationale exposition of
value thinking that links performance target with firm value?
a.
Cutting the indirect labor cost will increase sales volume,
which will affect margin vis-à-vis return on equity.
b.
None of the other options.
c.
Delayed response to customer complaints increases the cost of
goods sold and reduces margin vis-à-vis firm value.
d.
Optimization of order size will reduce the cost of managing
inventory that will affect capital turnover, and eventually firms'
return on equity vis-à-vis firm value.
Question 8
Not yet answered
Marked out of 1.00
Flag question
Question
text
Assume the issuer incurs $0.5 million in other expenses
to sell 3 million shares at $50 each to an underwriter. The
underwriter sells the shares at $53 each. By the end of the first
day’s trading, the issuing company’s stock price had risen to $75.
What is the total cost of underpricing?
a.
$75 million
b.
$66
c.
$66 million
d.
Can not be determined