Explain what is a book value

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Question1. Explain what is a book value and how does it relate to the cash flow of a security?

Question2. Explain the relationship between the cost of capital and the value of the firm.

Question3. Explain why the terminal cash flows of an existing asset are included in the calculation of the initial outlay for a replacement project, but not for an expansion project?

Question4. Explain the difference between factoring and discounting invoices and give examples. 

Question5. Explain what a novated lease is and how they are commonly used. What are the advantages to an employee entering such an arrangement?

Question6. 'An increase in dividends reduces agency cost.' Briefly explain this proposition.

Reference no: EM133233583

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