{"id":8034,"date":"2021-10-14T21:00:41","date_gmt":"2021-10-14T21:00:41","guid":{"rendered":"https:\/\/assignmenttutors.net\/blog\/which-of-the-following-capital-budgeting-techniques-ignores-the-time\/"},"modified":"2021-10-14T21:00:41","modified_gmt":"2021-10-14T21:00:41","slug":"which-of-the-following-capital-budgeting-techniques-ignores-the-time","status":"publish","type":"post","link":"https:\/\/assignmenttutors.net\/blog\/which-of-the-following-capital-budgeting-techniques-ignores-the-time\/","title":{"rendered":"Which of the following capital budgeting techniques ignores the time"},"content":{"rendered":"<div>\n<p><span>Question <\/span><\/p>\n<p><span>Question 1.<strong>1.<\/strong>Which of the following capital budgeting techniques ignores the time value of money? (Points : 2.5)<\/span><\/p>\n<p><span>payback period approach<\/span><\/p>\n<p><span>net present value<\/span><\/p>\n<p><span>internal rate of return<\/span><\/p>\n<p><span>profitability index<\/span><\/p>\n<p><span>Question 2.<strong>2.<\/strong><\/span><\/p>\n<p><span>The ________ is the rate of return that a firm must earn on its investments in order to maintain the market value of its stock. (Points : 2.5)<\/span><\/p>\n<p><span>yield to maturity<\/span><\/p>\n<p><span>cost of capital<\/span><\/p>\n<p><span>internal rate of return<\/span><\/p>\n<p><span>modified internal rate of return<\/span><\/p>\n<p><span>Question 3.<strong>3.<\/strong><\/span><\/p>\n<p><span>The cost of common stock equity is ________. (Points : 2.5)<\/span><\/p>\n<p><span>the cost of the guaranteed stated dividend expected by the stockholders<\/span><\/p>\n<p><span>the rate at which investors discount the expected dividends of the firm to determine its share value<\/span><\/p>\n<p><span>the after-tax cost of the interest obligations<\/span><\/p>\n<p><span>the historical cost of floating the stock issue<\/span><\/p>\n<p><span>Question 4.<strong>4.<\/strong><\/span><\/p>\n<p><span>A firm has an average age of inventory of 90 days, an average collection period of 40 days, and an average payment period of 30 days. The firm&#8217;s operating cycle is ________ days.<\/span><\/p>\n<p><span>(Points : 2.5)<\/span><\/p>\n<p><span>110<\/span><\/p>\n<p><span>130<\/span><\/p>\n<p><span>120<\/span><\/p>\n<p><span>70<\/span><\/p>\n<p><span>Question 5.<strong>5.<\/strong><\/span><\/p>\n<p><span>Which of the following is true of current assets? <\/span><\/p>\n<p><span>(Points : 2.5)<\/span><\/p>\n<p><span>\u00a0<\/span><\/p>\n<p><span>The time of conversion of current assets to more liquid form is relatively unpredictable.<\/span><\/p>\n<p><span>They are used to fund long-term operations and pay long-term expenses.<\/span><\/p>\n<p><span>They are more profitable because they add more value to the product than that provided by fixed assets.<\/span><\/p>\n<p><span>They are sources of short-term financing for a firm<\/span><\/p>\n<p><span>Question 6.<strong>6.<\/strong>At a firm&#8217;s quarterly dividend meeting held April 9, the directors declared a $0.50 per share cash dividend for the holders of record on Monday, May 1. The firm&#8217;s stock will sell ex dividends on ________.(Points : 2.5)<\/span><\/p>\n<p><span>April 28<\/span><\/p>\n<p><span>May 5<\/span><\/p>\n<p><span>April 29<\/span><\/p>\n<p><span>April 27<\/span><\/p>\n<p><span>Question 7.<strong>7.<\/strong><\/span><\/p>\n<p><span>Generally, the order of cost, from the least expensive to the most expensive, for long-term capital of a corporation is ________.<\/span><\/p>\n<p><span>(Points : 2.5)<\/span><\/p>\n<p><span>new common stock, retained earnings, preferred stock, long-term debt<\/span><\/p>\n<p><span>common stock, preferred stock, long-term debt, short-term debt<\/span><\/p>\n<p><span>preferred stock, new common stocks, common stock, retained earnings<\/span><\/p>\n<p><span>long-term debt, preferred stock, retained earnings, new common stock<\/span><\/p>\n<p><span>Question 8.<strong>8.<\/strong><\/span><\/p>\n<p><span>Cash flows that could be realized from the best alternative use of an owned asset are called ________.<\/span><\/p>\n<p><span>(Points : 2.5)<\/span><\/p>\n<p><span>incremental costs<\/span><\/p>\n<p><span>lost resale opportunities<\/span><\/p>\n<p><span>opportunity costs<\/span><\/p>\n<p><span>sunk costs<\/span><\/p>\n<p><span>Question 9.<strong>9.<\/strong><\/span><\/p>\n<p><span>The clientele effect refers to ________.<\/span><\/p>\n<p><span>(Points : 2.5)<\/span><\/p>\n<p><span>the relevance of dividend policy on a firm&#8217;s share value<\/span><\/p>\n<p><span>a firm&#8217;s ability to attract stockholders whose dividend preferences are similar to the firm&#8217;s dividend policy<\/span><\/p>\n<p><span>the informational content of dividends that helps in predicting the future earnings and growth of a firm<\/span><\/p>\n<p><span>the &#8220;bird-in-the-hand&#8221; argument<\/span><\/p>\n<p><span>Question 10.<strong>10.<\/strong>An increase in fixed operating costs will result in ________.(Points : 2.5)<\/span><\/p>\n<p><span>a decrease in the degree of operating leverage<\/span><\/p>\n<p><span>an increase in the degree of operating leverage<\/span><\/p>\n<p><span>a decrease in the degree of financial leverage<\/span><\/p>\n<p><span>an increase in the degree of financial leverage<\/span><\/p>\n<p><span>Question 11.<strong>11.<\/strong><\/span><\/p>\n<p><span>A firm has an average age of inventory of 60 days, an average collection period of 45 days, and an average payment period of 30 days. The firm&#8217;s cash conversion cycle is ________ days.<\/span><\/p>\n<p><span>(Points : 2.5)<\/span><\/p>\n<p><span>15<\/span><\/p>\n<p><span>45<\/span><\/p>\n<p><span>75<\/span><\/p>\n<p><span>135<\/span><\/p>\n<p><span>Question 12.<strong>12.<\/strong><\/span><\/p>\n<p><span>What is the NPV for a project whose cost of capital is 15 percent and initial after-tax cost is $5,000,000 and is expected to provide after-tax operating cash inflows of $1,800,000 in year 1, $1,900,000 in year 2, $1,700,000 in year 3, and $1,300,000 in year 4?<\/span><\/p>\n<p><span>(Points : 2.5)<\/span><\/p>\n<p><span>$1,700,000<br \/>$371,764<\/span><\/p>\n<p><span>-$137,053<\/span><\/p>\n<p><span>-$4,862,947<\/span><\/p>\n<p><span>Question 13.<strong>13.<\/strong><\/span><\/p>\n<p><span>Breakeven analysis is used by a firm ________.<\/span><\/p>\n<p><span>(Points : 2.5)<\/span><\/p>\n<p><span>to determine the level of operations necessary to cover all fixed operating costs<\/span><\/p>\n<p><span>to determine the least cost of producing goods and services<\/span><\/p>\n<p><span>to evaluate the profitability associated with various levels of sales<\/span><\/p>\n<p><span>to determine the demand of a product<\/span><\/p>\n<p><span>Question 14.<strong>14.<\/strong><\/span><\/p>\n<p><span>Cash outlays that had been previously made and have no effect on the cash flows relevant to a current decision are called ________.<\/span><\/p>\n<p><span>(Points : 2.5)<\/span><\/p>\n<p><span>incremental historical costs<\/span><\/p>\n<p><span>incremental past expenses<\/span><\/p>\n<p><span>opportunity costs foregone<\/span><\/p>\n<p><span>sunk costs<\/span><\/p>\n<p><span>Question 15.<strong>15.<\/strong><\/span><\/p>\n<p><span>Which of the following is true of a dividend payout?<\/span><\/p>\n<p><span>(Points : 2.5)<\/span><\/p>\n<p><span>When a firm announces that it will increase its dividend, the share price usually decreases on that news.<\/span><\/p>\n<p><span>Dividend payments send a positive signal to investors in the marketplace that management believes that the stock is overvalued.<\/span><\/p>\n<p><span>When a firm pays out dividends the share price will fall.<br \/>Dividend payouts have no impact on the share price of a stock in an efficient market<\/span><\/p>\n<p><span>Question 16.<strong>16.<\/strong>If a firm&#8217;s fixed operating costs decrease, the firm&#8217;s ________.(Points : 2.5)<\/span><\/p>\n<p><span>operating breakeven point will decrease<\/span><\/p>\n<p><span>operating breakeven point will increase<\/span><\/p>\n<p><span>sale price per unit will decrease<\/span><\/p>\n<p><span>sale price per unit will increase<\/span><\/p>\n<p><span>Question 17.<strong>17.<\/strong><\/span><\/p>\n<p><span>________ projects do not compete with each other; the acceptance of one ________ the others from consideration.<\/span><\/p>\n<p><span>(Points : 2.5)<\/span><\/p>\n<p><span>Capital; eliminates<\/span><\/p>\n<p><span>Independent; does not eliminate<\/span><\/p>\n<p><span>Mutually exclusive; eliminates<\/span><\/p>\n<p><span>Replacement; eliminates<\/span><\/p>\n<p><span>Question 18.<strong>18.<\/strong><\/span><\/p>\n<p><span>Generally the least expensive source of long-term capital is ________.<\/span><\/p>\n<p><span>(Points : 2.5)<\/span><\/p>\n<p><span>retained earnings<\/span><\/p>\n<p><span>preferred stock<\/span><\/p>\n<p><span>long-term debt<\/span><\/p>\n<p><span>common stock<\/span><\/p>\n<p><span>Question 19.<strong>19.<\/strong><\/span><\/p>\n<p><span>The book value of an asset is equal to the ________.<\/span><\/p>\n<p><span>(Points : 2.5)<\/span><\/p>\n<p><span>fair market value minus the accounting value<\/span><\/p>\n<p><span>original purchase price plus annual depreciation expense<\/span><\/p>\n<p><span>original purchase price minus accumulated depreciation<\/span><\/p>\n<p><span>depreciated value plus recaptured depreciation<\/span><\/p>\n<p><span>Question 20.<strong>20.<\/strong><\/span><\/p>\n<p><span>Which of the following is true of leverage?<\/span><\/p>\n<p><span>(Points : 2.5)<\/span><\/p>\n<p><span>It refers to the effects that operating and financial fixed costs have on the returns that shareholders earn.<\/span><\/p>\n<p><span>It is associated with risks which are out of the control of managers.<\/span><\/p>\n<p><span>It includes the effect of operating fixed costs on the returns of shareholders and not the financial fixed costs.<\/span><\/p>\n<p><span>It is used to evaluate the profitability associated with various levels of sales<\/span><\/p>\n<p><span>Question 21.<strong>21.<\/strong><\/span><\/p>\n<p><span>The tax treatment regarding the sale of existing assets that are sold for more than the original purchase price results in ________.<\/span><\/p>\n<p><span>(Points : 2.5)<\/span><\/p>\n<p><span>an ordinary tax benefit<\/span><\/p>\n<p><span>no tax benefit or liability<\/span><\/p>\n<p><span>a recaptured depreciation taxed as ordinary income<\/span><\/p>\n<p><span>a capital gain tax liability<\/span><\/p>\n<p><span>Question 22.<strong>22.<\/strong><\/span><\/p>\n<p><span>The cost of common stock equity may be estimated by using the ________.<\/span><\/p>\n<p><span>(Points : 2.5)<\/span><\/p>\n<p><span>yield curve<\/span><\/p>\n<p><span>capital asset pricing model<\/span><\/p>\n<p><span>break-even analysis<\/span><\/p>\n<p><span>DuPont analysis<\/span><\/p>\n<p><span>Question 23.<strong>23.<\/strong>A firm with limited dollars available for capital expenditures is subject to ________.(Points : 2.5)<\/span><\/p>\n<p><span>capital dependency<\/span><\/p>\n<p><span>capital gains<\/span><\/p>\n<p><span>working capital constraints<\/span><\/p>\n<p><span>capital rationing<\/span><\/p>\n<p><span>Question 24.<strong>24.<\/strong><\/span><\/p>\n<p><span>A firm has issued preferred stock at its $125 per share par value. The stock will pay a $15 annual dividend. The cost of issuing and selling the stock was $4 per share. The cost of the preferred stock is ________.<\/span><\/p>\n<p><span>(Points : 2.5)<\/span><\/p>\n<p><span>12.4 percent<\/span><\/p>\n<p><span>7.2 percent<\/span><\/p>\n<p><span>12 percent<\/span><\/p>\n<p><span>15 percent<\/span><\/p>\n<p><span>Question 25.<strong>25.<\/strong><\/span><\/p>\n<p><span>Which of the following is a fixed cost?<\/span><\/p>\n<p><span>(Points : 2.5)<\/span><\/p>\n<p><span>inventory<\/span><\/p>\n<p><span>rent<\/span><\/p>\n<p><span>delivery costs<\/span><\/p>\n<p><span>direct labor<\/span><\/p>\n<p><span>Question 26.<strong>26.<\/strong><\/span><\/p>\n<p><span>________ projects have the same function; the acceptance of one ________ the others from consideration.<\/span><\/p>\n<p><span>(Points : 2.5)<\/span><\/p>\n<p><span>Capital; eliminates<\/span><\/p>\n<p><span>Independent; does not eliminate<\/span><\/p>\n<p><span>Mutually exclusive; eliminates<\/span><\/p>\n<p><span>Replacement; eliminates<\/span><\/p>\n<p><span>Question 27.<strong>27.<\/strong><\/span><\/p>\n<p><span>A firm has fixed operating costs of $525,000. The sales price per unit is $35 and its variable costs per unit is $22.50. The firm&#8217;s operating breakeven point in units is ________.<\/span><\/p>\n<p><span>(Points : 2.5)<\/span><\/p>\n<p><span>23,330<\/span><\/p>\n<p><span>32,000<\/span><\/p>\n<p><span>42,000<\/span><\/p>\n<p><span>52,000<\/span><\/p>\n<p><span>Question 28.<strong>28.<\/strong><\/span><\/p>\n<p><span>________ is the potential use of fixed financial charges to magnify the effects of changes in earnings before interest and taxes on a firm&#8217;s earnings per share.<\/span><\/p>\n<p><span>(Points : 2.5)<\/span><\/p>\n<p><span>Financial leverage<\/span><\/p>\n<p><span>Operating leverage<\/span><\/p>\n<p><span>Total leverage<\/span><\/p>\n<p><span>Degree of operating leverage<\/span><\/p>\n<p><span>Question 29.<strong>29.<\/strong><\/span><\/p>\n<p><span>What is the IRR for the following project if its initial after-tax cost is $5,000,000 and it is expected to provide after-tax operating cash inflows of $1,800,000 in year 1, $1,900,000 in year 2, $1,700,000 in year 3, and $1,300,000 in year 4?<\/span><\/p>\n<p><span>(Points : 2.5)<\/span><\/p>\n<p><span>15.57%<\/span><\/p>\n<p><span>0.00%<\/span><\/p>\n<p><span>13.57%<\/span><\/p>\n<p><span>12.25%<\/span><\/p>\n<p><span>Question 30.<strong>30. <\/strong>What is the profitability index of a project that has an initial cash outflow of $600, an inflow of $250 for the next 3 years and a cost of capital of 10 percent?(Points : 2.5)<\/span><\/p>\n<p><span>0.66<\/span><\/p>\n<p><span>2.036<\/span><\/p>\n<p><span>1.036<\/span><\/p>\n<p><span>2.739<\/span><\/p>\n<p><span>Question 31.<strong>31.<\/strong>The payment of cash dividends to corporate stockholders is decided by the ________.(Points : 2.5)<\/span><\/p>\n<p><span>creditors<\/span><\/p>\n<p><span>stockholders<\/span><\/p>\n<p><span>SEC<\/span><\/p>\n<p><span>board of directors<\/span><\/p>\n<p><span>Question 32.<strong>32.<\/strong><\/span><\/p>\n<p><span>________ is the process of evaluating and selecting long-term investments that are consistent with a firm&#8217;s goal of maximizing owners&#8217; wealth.<\/span><\/p>\n<p><span>(Points : 2.5)<\/span><\/p>\n<p><span>Recapitalizing assets<\/span><\/p>\n<p><span>Capital budgeting<\/span><\/p>\n<p><span>Ratio analysis<\/span><\/p>\n<p><span>Securitization<\/span><\/p>\n<p><span>Question 33.<strong>33.<\/strong><\/span><\/p>\n<p><span>A firm has common stock with a market price of $25 per share and an expected dividend of $2 per share at the end of the coming year. The growth rate in dividends has been 5 percent. The cost of the firm&#8217;s common stock equity is ________.<\/span><\/p>\n<p><span>(Points : 2.5)<\/span><\/p>\n<p><span>5 percent<\/span><\/p>\n<p><span>8 percent<\/span><\/p>\n<p><span>10 percent<\/span><\/p>\n<p><span>13 percent<\/span><\/p>\n<p><span>Question 34.<strong>34.<\/strong><\/span><\/p>\n<p><span>Which of the following would be used in the computation of an initial investment?<\/span><\/p>\n<p><span>(Points : 2.5)<\/span><\/p>\n<p><span>the annual after-tax inflow expected from the investment<\/span><\/p>\n<p><span>the initial purchase price of the investment<\/span><\/p>\n<p><span>the historic cost of the existing investment<\/span><\/p>\n<p><span>the profits from the new investment<\/span><\/p>\n<p><span>Question 35.<strong>35.<\/strong><\/span><\/p>\n<p><span>According to the residual theory of dividends, if a firm&#8217;s equity need exceeds the amount of retained earnings, the firm would ________.<\/span><\/p>\n<p><span>(Points : 2.5)<\/span><\/p>\n<p><span>borrow to pay the cash dividend<\/span><\/p>\n<p><span>sell additional stock to pay the cash dividend<\/span><\/p>\n<p><span>pay no cash dividends<\/span><\/p>\n<p><span>pay less dividends<\/span><\/p>\n<p><span>Question 36.<strong>36. <\/strong>Tangshan Mining has common stock at par of $200,000, paid-in capital in excess of par of $400,000, and retained earnings of $280,000. In states where the firm&#8217;s legal capital is defined as the par value of common stock, the firm could pay out ________ in cash dividends without impairing its capital(Points : 2.5)<\/span><\/p>\n<p><span>$200,000<\/span><\/p>\n<p><span>$680,000<\/span><\/p>\n<p><span>$600,000<\/span><\/p>\n<p><span>$880,000<\/span><\/p>\n<p><span>Question 37.<strong>37. <\/strong>A tax adjustment must be made in determining the cost of ________.(Points : 2.5)<\/span><\/p>\n<p><span>long-term debt<\/span><\/p>\n<p><span>common stock<\/span><\/p>\n<p><span>preferred stock<\/span><\/p>\n<p><span>retained earnings<\/span><\/p>\n<p><span>Question 38.<strong>38.<\/strong><\/span><\/p>\n<p><span>The change in net working capital when evaluating a capital budgeting decision is ________.<\/span><\/p>\n<p><span>(Points : 2.5)<\/span><\/p>\n<p><span>the change in fixed liabilities minus the change in fixed assets<\/span><\/p>\n<p><span>the increase in current assets<\/span><\/p>\n<p><span>the increase in current liabilities<\/span><\/p>\n<p><span>the change in current assets minus the change in current liabilities<\/span><\/p>\n<p><span>Question 39.<strong>39.<\/strong><\/span><\/p>\n<p><span>The ________ is a weighted average of the cost of funds which reflects the interrelationship of financing decisions.<\/span><\/p>\n<p><span>(Points : 2.5)<\/span><\/p>\n<p><span>internal rate of return<\/span><\/p>\n<p><span>sunk cost<\/span><\/p>\n<p><span>cost of capital<\/span><\/p>\n<p><span>risk-free rate<\/span><\/p>\n<p><span>Question 40.<strong>40.<\/strong><\/span><\/p>\n<p><span>A firm has determined its cost of each source of capital and optimal capital structure, which is composed of the following sources and target market value proportions:<\/span><\/p>\n<p><span>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Target Market<\/span><\/p>\n<p><span>Source of Capital\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Proportions \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 After-Tax Cost<\/span><\/p>\n<p><span>Long-Term Debt \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a040% \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a06%<\/span><\/p>\n<p><span>Preferred Stock \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a010% \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a011%<\/span><\/p>\n<p><span>Common Stock \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a050% \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 15%<\/span><\/p>\n<p><span>The weighted average cost of capital is ________.<\/span><\/p>\n<p><span>(Points : 2.5)<\/span><\/p>\n<p><span>6 percent<\/span><\/p>\n<p><span>10.7 percent<\/span><\/p>\n<p><span>11 percent<\/span><\/p>\n<p>\u00a0<\/p>\n<p><span>15 percent<\/span><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Question Question 1.1.Which of the following capital budgeting techniques ignores the time value of money? (Points : 2.5) payback period approach net present value internal rate of return profitability index Question 2.2. The ________ is the rate of return that a firm must earn on its investments in order to maintain the market value of [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":["post-8034","post","type-post","status-publish","format-standard","hentry","category-homework-help"],"_links":{"self":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/8034","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/comments?post=8034"}],"version-history":[{"count":0,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/8034\/revisions"}],"wp:attachment":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/media?parent=8034"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/categories?post=8034"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/tags?post=8034"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}