Balance sheet-return are more than marginal cost of capital

Assignment Help Financial Management

Reference no: EM131933715

1. The Balance Sheet

Is a reflection of economic value

Reflects what the business is worth and its resale value

Takes inflation into account

None of the above

2. Beige Inc. has to choose from three projects whose internal rates of return are more than the marginal cost of capital. Beige should choose those projects that _______

a: minimize the marginal cost of capital

b: maximize the excess of internal rate of return over marginal costs

c: maximize the dividend payout

d: maximize the cash flow from the investment in projects

e: minimize the rate of return to the investors

Reference no: EM131933715

Questions Cloud

Set of rules dealing with back dating of securities for sale : The Securities and Exchange Commission (SEC) is contemplating issuing a set of rules dealing with the back dating of securities for sale.

Fixed interest mortgages with an average balance : Money Pit Bank (MPB) is originating a pool of 75 ten-year fixed interest mortgages with an average balance of $100,000 each.

Declining industry is likely to experience severity : At default at a company that is in a mature/declining industry is likely to experience severity that is

Current ratio and working capital of each business entity : Compute the current ratio and working capital of each business entity

Balance sheet-return are more than marginal cost of capital : The Balance Sheet. Beige Inc. has to choose from three projects whose internal rates of return are more than the marginal cost of capital.

Bonds are issued with a high effective-interest rate : She is contemplating a large issue of bonds, even if it means the bonds are issued with a high effective-interest rate.

Portfolio performance relative to specific benchmarks : Considering tracking your portfolio performance relative to specific benchmarks, Cramer says "diversification is the only free lunch".

An investor would like to invest in stock market : An investor would like to invest in stock market, but does not have sufficient funds for the next two months.

The variability of the security market price : The higher the call option premium, other things being equal, ______________ the variability of the security’s market price.

User Account

All Pages