Homework Answers
Answer:- Option(a):- Irrelevant
Explanation:- In residual theory of dividends, it is assumed the dividend irrelevance theory is true. Additionally, in residual dividend policy, the company’s market value of company is not affected because investors value dividends and capital gains equally.
Answer:- Option(a):- The time value of money is ignored. It ignores cash flows beyond payback period
Explanation:- The most important concept of time value of money is ignored in payback period . In the concept of time value of money, the money received sooner is worth more than the one coming later but this is ignored in payback period.
Another disadvantage of payback period is it does not cover all cash flows that is it considers the cash flows only till the time the initial investment is recovered.
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The residual theory of dividends suggests that dividends are to the value of the firm. Select...
The residual dividend theory suggests that dividends should be paid to stockholders first and then what...
The residual dividend theory suggests that dividends should be paid to stockholders first and then what is left can be reinvested by the firm. True. False.
Which of the following statements is CORRECT? Assume that the project being considered has normal cash flows, with...
Which of the following statements is CORRECT? Assume that the project being considered has normal cash flows, with one outflow followed by a series of inflows. a. The longer a project's payback period, the more desirable the project is normally considered to be by this criterion. b. One drawback of the payback criterion for evaluating projects is that this method does not properly account for the time value of money. c. If a project's payback is positive, then the project...
please answer all the multiple choice quesrions Time value of money is closely associated with the...
please
answer all the multiple choice quesrions
Time value of money is closely associated with the idea of: ООО Investing in a variety of different securities A dollar today is worth more than a dollar tomorrow Inability to pay out profits as opposed to cash Security prices quickly reflect new information True False Problems with payback include - it ignores cash flows beyond the payback period What is the present value of $1,800 to be received nine years from now...
Fuzzy Button Clothing Company is a small firm, and several of its managers are worried about...
Fuzzy Button Clothing Company is a small firm, and several of its managers are worried about how soon the firm will be able to recover its initial investment from Project Omega's expected future cash flows. To answer this question, Fuzzy Button's CFO has asked that you compute the project's payback period using the following expected net cash flows and assuming that the cash flows are received evenly throughout each year. Complete the following table and compute the project's conventional payback...
Green Caterpillar Garden Supplies Inc. is a small firm, and several of its managers are worried...
Green Caterpillar Garden Supplies Inc. is a small firm, and several of its managers are worried about how soon th Firm will be able to recover its initial investment from Project Delta's expected future cash flows. To answer this question, Green Caterpillar's CFO has asked that you compute the project's payback period using the following expected net cash flows and assuming that the cash flows are received evenly throughout each year. Complete the following table and compute the project's conventional...
Blue Hamster Manufacturing Inc. is a small firm, and several of its managers are worried about...
Blue Hamster Manufacturing Inc. is a small firm, and several of its managers are worried about how soon the firm will be able to recover its initial investment from Project Alpha's expected future cash flows. To answer this question, Blue Hamster's CFO has asked that you compute the project's payback period using the following expected net cash flows and assuming that the cash flows are received evenly throughout each year. Complete the following table and compute the project's conventional payback...
Cute Camel Woodcraft Company is a small firm, and several of its managers are worried about...
Cute Camel Woodcraft Company is a small firm, and several of its managers are worried about how soon the firm will be able to recover its initial investment from Project Sigma's expected future cash flows. To answer this question, Cute Camel's CFO has asked that you compute the project's payback period using the following expected net cash flows and assuming that the cash flows are received evenly throughout each year Complete the following table and compute the project's conventional payback...
Cold Goose Metal Works Inc. is a small firm, and several of its managers are worried...
Cold Goose Metal Works Inc. is a small firm, and several of its managers are worried about how soon the firm will be able to recover its initial investment from Project Sigma's expected future cash flows. To answer this question, Cold Goose's CFO has asked that you compute the project's payback period using the following expected net cash flows and assuming that the cash flows are received evenly throughout each year. Complete the following table and compute the project's conventional...
Blue Hamster Manufacturing Inc. is a small firm, and several of its managers are worried about...
Blue Hamster Manufacturing Inc. is a small firm, and several of its managers are worried about how soon the firm will be able to recover its initial investment from Project Alpha's expected future cash flows. To answer this question, Blue Hamster's CFO has asked that you compute the project's payback period using the following expected net cash flows and assuming that the cash flows are received evenly throughout each year. Complete the following table and compute the project's conventional payback...
PLEASE HELP! Thank you very much! Cute Camel Woodcraft Company is a small firm, and several...
PLEASE HELP!
Thank you very much!
Cute Camel Woodcraft Company is a small firm, and several of its managers are worried about how soon the firm will be able to recover its initial investment from Project Alpha's expected future cash flows. To answer this question Cute Camel's CFO has asked that you compute the project's payback period using the following expected net cash flows and assuming that the cash flows are received evenly throughout each year. Complete the following table...
Which of the following statements is CORRECT? Assume that the project being considered has normal cash flows, with one outflow followed by a series of inflows. a. The longer a project's payback period, the more desirable the project is normally considered to be by this criterion. b. One drawback of the payback criterion for evaluating projects is that this method does not properly account for the time value of money. c. If a project's payback is positive, then the project...
please
answer all the multiple choice quesrions
Time value of money is closely associated with the idea of: ООО Investing in a variety of different securities A dollar today is worth more than a dollar tomorrow Inability to pay out profits as opposed to cash Security prices quickly reflect new information True False Problems with payback include - it ignores cash flows beyond the payback period What is the present value of $1,800 to be received nine years from now...
Fuzzy Button Clothing Company is a small firm, and several of its managers are worried about how soon the firm will be able to recover its initial investment from Project Omega's expected future cash flows. To answer this question, Fuzzy Button's CFO has asked that you compute the project's payback period using the following expected net cash flows and assuming that the cash flows are received evenly throughout each year. Complete the following table and compute the project's conventional payback...
Green Caterpillar Garden Supplies Inc. is a small firm, and several of its managers are worried about how soon th Firm will be able to recover its initial investment from Project Delta's expected future cash flows. To answer this question, Green Caterpillar's CFO has asked that you compute the project's payback period using the following expected net cash flows and assuming that the cash flows are received evenly throughout each year. Complete the following table and compute the project's conventional...
Blue Hamster Manufacturing Inc. is a small firm, and several of its managers are worried about how soon the firm will be able to recover its initial investment from Project Alpha's expected future cash flows. To answer this question, Blue Hamster's CFO has asked that you compute the project's payback period using the following expected net cash flows and assuming that the cash flows are received evenly throughout each year. Complete the following table and compute the project's conventional payback...
Cute Camel Woodcraft Company is a small firm, and several of its managers are worried about how soon the firm will be able to recover its initial investment from Project Sigma's expected future cash flows. To answer this question, Cute Camel's CFO has asked that you compute the project's payback period using the following expected net cash flows and assuming that the cash flows are received evenly throughout each year Complete the following table and compute the project's conventional payback...
Cold Goose Metal Works Inc. is a small firm, and several of its managers are worried about how soon the firm will be able to recover its initial investment from Project Sigma's expected future cash flows. To answer this question, Cold Goose's CFO has asked that you compute the project's payback period using the following expected net cash flows and assuming that the cash flows are received evenly throughout each year. Complete the following table and compute the project's conventional...
Blue Hamster Manufacturing Inc. is a small firm, and several of its managers are worried about how soon the firm will be able to recover its initial investment from Project Alpha's expected future cash flows. To answer this question, Blue Hamster's CFO has asked that you compute the project's payback period using the following expected net cash flows and assuming that the cash flows are received evenly throughout each year. Complete the following table and compute the project's conventional payback...
PLEASE HELP!
Thank you very much!
Cute Camel Woodcraft Company is a small firm, and several of its managers are worried about how soon the firm will be able to recover its initial investment from Project Alpha's expected future cash flows. To answer this question Cute Camel's CFO has asked that you compute the project's payback period using the following expected net cash flows and assuming that the cash flows are received evenly throughout each year. Complete the following table...
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