Reference no: EM132928051
Questions -
Q1 - Which of the following would INCREASE the NPV of a project being considered, other things held constant?
A) Making the initial investment in the first year rather than spreading it over the first two years
B) An increase in the cost of capital for the project.
C) An increase in net working capital in year 1
D) All of these changes would decrease the NPV of a project.
E) A shift from MACRS to straight line depreciation method
Q2 - Stock A's beta is 1.5 and Stock B's beta is 0.5. Which of the following statements must be true about these securities? (Assume market equilibrium.)
A) Stock B must be a more desirable addition to a portfolio than A.
B) Stock A's realized return next year will be higher than Stock B's return.
C) In a given day, when Stock B's return declines by 1%, Stock A's return declines by 3%.
D) If investors becomes less risk averse, the required return on Stock A will decline by more than that on Stock B.
E) Stock A has a higher standard deviation than Stock B.
Q3 - SuperMart has operating income (EBIT) of $1,290,149. Its depreciation & amortization expense is $308,489. The company is 100% equity financed (that is, its interest expense is zero). The company has a 40% tax rate, and its net investment in operating capital is $516,601. How much is the difference between the company's net cash flow and operating cash flow? Ignore dollar sign and round your final answer to the nearest dollar.
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How much would you need to save
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How can be prevented and detected
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What strategies might use to overcome the objections
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Find what the balance in the cash account at end of january
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How much is the company net cash flow
: SuperMart has operating income (EBIT) of $1,290,149. Its depreciation & amortization expense is $308,489. How much is the company net cash flow
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Prepare the relevant journal entries or notes to the account
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How will the transaction appear in the operating activities
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Calculate the basic earnings power
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How will the march transaction be shown in the statement
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