Reference no: EM132425073

1. A key difference between replacement and expansion project analyses is that with replacement, the incremental cash flows are measured as the net difference between projected cash flows from the current productive assets and cash flows of the proposed new productive assets.

True / False

2. The weighted average cost of capital increases if the total funds required call for an amount of equity in excess of what can be obtained as retained earnings.

True / False

3. Market risk refers to the tendency of a stock to move with the general stock market. A stock with above-average market risk will tend to be more volatile than an average stock, and it will have a beta which is greater than 1.0.

True / False

4. Other things held constant, an increase in financial leverage will increase a firm's market risk as measured by its beta coefficient.

True / False

5. The post-audit is a simple process in which actual results are compared to forecasted results and any discrepancy indicates a change in factors that are completely under management's control.

True / False

Attachment:- Questions In Business Finance.rar