1-Aconservative financing policy indicates that investment in fixed and current assets is funded by long-term sources of financing and this policy leads to a-Low risk of real and financial hardship – b-Low interest rates and apayment premium borne by the company 2- The payback period method in evaluating projects depends on extracting the time period required to cover the investment amount under this method a-we tuke only cashflows to cover the investment size b-we talk cash flows to cover with cash flows expected to be collected after the payback period 3- suppose you have a stock and this stock achieves a loss in half of the period of 20% and makes a profit in the other half of the period of 70% and therefore the expected rate of return per share will ER =25% ER=50% ER=65%
1-Aconservative financing policy indicates that investment in fixed and current assets is funded by long-term sources of financing and this policy leads to a-Low risk of real and financial hardship – b-Low interest rates and apayment premium borne by the company 2- The payback period method in evaluating projects depends on extracting the time period required to cover the investment amount under this method a-we tuke only cashflows to cover the investment size b-we talk cash flows to cover with cash flows expected to be collected after the payback period 3- suppose you have a stock and this stock achieves a loss in half of the period of 20% and makes a profit in the other half of the period of 70% and therefore the expected rate of return per share will ER =25% ER=50% ER=65%
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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choose the coreect answer
1-Aconservative financing policy indicates that investment in fixed and current assets is funded by long-term sources of financing and this policy leads to
a-Low risk of real and financial hardship –
b-Low interest rates and apayment premium borne by the company
2-
The payback period method in evaluating projects depends on extracting the time period required to cover the investment amount under this method
a-we tuke only cashflows to cover the investment size
b-we talk cash flows to cover with cash flows expected to be collected after the payback period
3-
suppose you have a stock and this stock achieves a loss in half of the period of 20% and makes a profit in the other half of the period of 70% and therefore the expected rate of return per share will
ER =25%
ER=50%
ER=65%
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