Project’s Cash Inflow Assignment
Which of the following is/are not a project’s cash inflow(s)? Ignore any tax effects.
I. equipment acquisition
II. decrease in inventory
III. product development cost
IV. decrease in accounts payable
V. product marketability studying cost
0 O I, III, IV and V only
0 I, II and III only
0 land Il only
0 O I Ill and only
0 Ill and V only
We can apply the the dividend growth model to estimate the cost of equity for
I. firms that pay no dividend
II. firms that pay a constant dividend
III. firms that pay dividend with a constant rate of increase
IV. firms that pay dividend with a constant rate of decrease
O II, III and IV only
ο O and Ill only
ο II and III only
ο O I, II and III only
ο O and Il only
Which of the following statements related to cash dividends is/are correct?
1. Extra cash dividends cannot be repeated by a firm.
II. A dividend will become a liability before it has been declared.
III. Regular cash dividends must be paid out of the proceeds of selling assets
IV. The dividend yield expresses the annual dividend as a percentage of current stock price.
V. If a firm has paid regular quarterly dividends for at least five consecutive years it is legally obligated to continue doing so.
I, II and IV only
0 II, IV and V only
The information below are related to the proposed project of adding a new section of comic books at the City Hall Bookstore. The project’s time zero cash flow(s) include(s) Next
I. depreciation tax shield of $5,000
II. loan of $400,000 used to finance the project
III. cost of inventory replenish of $1,600 in the first year
IV. $64,000 of equipment needed to commence the project
V. wage of $45,000 paid to two newly hired workers for the project
O IV only
1,1,II, and IV only
o O I and II only and
l only o
o O I, II, and IV only
0 IV and V only. Get Finance homework help today