Posted: February 8th, 2016

A financial plan could be used to project all but

The ________ is utilized to value preferred stock.

a. Capital Asset Pricing Model (CAPM)
b. Constant Growth Model
c. Variable Growth Model
d. Zero Growth Model
e. Gordon Model

The factors involved in setting a dividend policy include all of the following except:

a. Operating Constraints
b. Legal Constraints
c. Contractual Constraints
d. Internal Constraints
e. Regulatory Constraints

Fluctuations in foreign exchange markets can affect foreign revenues and profits of a multinational company, but they have no impact on its overall value.

a. True
b. False

The three basic types of risks associated with internal cash flows are business and financial risks, inflation and foreign exchange risks, and political risks/

a. True
b. False

A local bank is offering a zero coupon certificate of deposit for $25,000. At maturity, three years from now, the investor will receive $32,000. What is the rate of return on this investment?

a. 3 percent
b. 6 percent
c. 9 percent
d. 12 percent
e. 15 percent

The present value of $200 to be received 10 years from today, assuming an opportunity cost of 10 percent is:

a. $50
b. $200
c. $518
d. $77
e. None of the above

In capital budgeting, the NPV will be zero when the discount rate used to evaluate the project is identical to the IRR.

a. True
b. False

Which of the following is not a component of a financial plan:

a. Capital expenditures
b. Working capital requirements
c. Price/Earnings on the stock
d. Sales and expense projections
e. Funding strategies

A financial plan could be used to project all but the following:

a. Profitability
b. Cash Flow
c. Market Competitiveness
d. Cost of Capital
e. Asset Utilization