33. The elements needed to calculate cash flow in perpetuity are: Relevant cash flow in last...

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Question

33. The elements needed to calculate cash flow in perpetuity are: Relevant cash flow in last...

33. The elements needed to calculate cash flow in perpetuity are:

Relevant cash flow in last year
Target’s cost of equity
Both A and B
Target’s cost of Debt

35. Control focuses on the:

Firms ownership
Sequencing of financial alternatives
speed associated with obtaining the funds
none of the above

business finance

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Answer 1

Answer #1

(33)

Cash Flow in Perpetuity = D/r

Where, D is the cash flow in per period and r is the cost of equity

Hence, the correct option is (c) both A and B

(35)

Control of a firm defines who the owner of the company are. The ownership of the firm lies with the shareholders of the firm.

Hence, the correct option is (a) Firm ownership

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Answer 2

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