When the net present value is negative

When the net present value is negative, the internal rate of return is __________ the cost of capital.
greater than
greater than or equal to
less than
equal to
shows the graphical relationship between a project’s NPV and cost of capital.
is the return that causes the NPV to be zero.
is the return that causes the NPV to be positive.
measures the firm and project’s required rate of return.
Which one of the following capital-budgeting evaluation techniques is based on finding a discount rate which causes the net present value to be zero?
net present value
internal rate of return
profitability index
An examination of a firm’s opportunities, strengths, threats and weaknesses is often referred to by the following acronym:
Capital budgeting is
the process of identifying, evaluating, and implementing a firm’s investment opportunities.
the process of identifying, evaluating, and implementing a firm’s objectives.
the process of identifying, evaluating, and implementing a firm’s strategic plans.
the process of identifying, evaluating, and implementing a firm’s financing requirements.
The relevant cash flows of a project do not include which one of the following?
incremental after-tax cash flows
cannibalization effects
opportunity costs
sunk costs
The stage in the capital budgeting process in which projects that are accepted must be executed in a timely fashion is called the _____________ stage.
The capital-budgeting process starts with which one of the following stages:
The corporate planning tool that develops project plans that fit well with the firm’s plans is often referred to by the following acronym:
When the net present value for a project is negative, the internal rate of return is _________ the cost of capital.
greater than
greater than or equal to
less than
equal to
Corporate debt as a percentage of GDP grew from around ______ in 1970 to nearly ______ in 2007.
35%; 50%
40%; 55%
45%; 60%
50%; 60%
The internal and sustainable growth rate relationships suggest that there are three measurable influences on growth. These include all of the following except:
asset policy
dividend policy
the firm’s capital structure
The initial impact of increasing the use of debt is to:
lower the cost of capital
lower the weight of the debt component
increase the cost of capital
lower the cost of retained earnings
Which of the following is a different concept from the other three?
required rate of return
cost of capital
discount rate
net profit margin
When retained earnings are used up and new common stock is issued, we know that the cost of:
equity has increased
equity has dropped
equity is unaffected
both common and preferred stock are affected
The firm’s target capital structure is consistent with which of the following?
minimum risk
maximum earnings per share
minimum weighted average cost of capital
minimum cost of equity
A firm’s degree of combined leverage can be measured as degree of operating leverage __________ the degree of financial leverage:
divided by
What should be the relation between the target capital structure for a firm and the firm’s optimum capital structure?
Target and optimum capital structures should be the same.
Target capital structure is more conservative overall.
Target capital structure contains more debt.
Target capital structure excludes preferred stock.
The cost of debt:
is typically higher than the cost of preferred stock
must be adjusted to an after-tax cost
is higher than the cost of retained earnings
is the lowest component cost because corporations can deduct 70 percent of the interest expense
Of the components shown below, which is least likely to be of value in calculating the cost of preferred stock?
flotation costs per share
book value of a preferred share
dividends per share
initial market price per share

Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

We value our customers and so we ensure that what we do is 100% original..
With us you are guaranteed of quality work done by our qualified experts.Your information and everything that you do with us is kept completely confidential.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

The Product ordered is guaranteed to be original. Orders are checked by the most advanced anti-plagiarism software in the market to assure that the Product is 100% original. The Company has a zero tolerance policy for plagiarism.

Read more

Free-revision policy

The Free Revision policy is a courtesy service that the Company provides to help ensure Customer’s total satisfaction with the completed Order. To receive free revision the Company requires that the Customer provide the request within fourteen (14) days from the first completion date and within a period of thirty (30) days for dissertations.

Read more

Privacy policy

The Company is committed to protect the privacy of the Customer and it will never resell or share any of Customer’s personal information, including credit card data, with any third party. All the online transactions are processed through the secure and reliable online payment systems.

Read more

Fair-cooperation guarantee

By placing an order with us, you agree to the service we provide. We will endear to do all that it takes to deliver a comprehensive paper as per your requirements. We also count on your cooperation to ensure that we deliver on this mandate.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages