Finance Retake

Analysis of a change in a projects npv when a single variable is changed is sensitivity analysis
Scenario analysis is defined by when what if questions are posed
An analysis that combines scenario analysis with sensitivity analysis simulation
fixed costs regardless of quantity produced
The change in variable costs that occurs when production is increased by one unit marginal costs
Variable costs can be defined vary directly with sales
The change in revenue that occurs when one more unit of output is sold marginal revenue
Operating leverage is the degree of dependence a firm places on operating cash flows
Which one of these combinations must increase contribution margin increasing sale price and decreasing variable cost per unit
Which of the following characteristics best describes a project that has a low degree of operating leverage high variable costs relative to fixed costs
Standard deviation is a measure of which of the following volatility
The average compound return earned per year over a multiyear period os called the _____ average return geometric
Describes dividend yield next years dividend divided by todays stock price
If inflation rate is positive, the real rate of return on security will be ______ the nominal rate of return less than
Inside info has the least value when financial markets are strong
Year ago Stock 32.15; dividend 0.20; today stock 33.09; what is capital gain 0.94
Stock 49.60; loss of 16.54%; capital gain was -9.92; dividend yield? capital gain divided by stock price; that plus dividend loss equals 3.46
A stock has annual return of 5, 21, -12, 7, -6; arithmetic and geometric 3, 2.37
What will increase cost of equity? Annual dividend of 1; beta of 1.2 a reduction in the risk free rate
The dividend growth model cannot be used to compute the cost of equity for a firm that has a retention rate of 100%
Which of the following increases a firms after tax cost of debt decrease in the firms tax rate
What is the after tax cost of debt in the firms weighted average cost of capital if the tax rate is 34% 5.94
What is the firms dividend 0.08= x/75-3.15
Dividend valutaiton model determines the value of a share of stock by taking present value
Optimal capital structure if the result is the lowest possible wacc
Marginal costs of capital the cost of the last dollar of capital raised, essentially the cost of another unit of capital raised
Capital asset pricing model the equation of the sml showing the relationship between expected return and beta
Wacc the cost of capital for the firm as a whole, and it can be interpreted as the required return on the overall firm
Cost of capital minimum required return
Financial capital financial assets or the financial value of assets, such as cash and funds held in deposit accounts, as well as the tangible machinery and production equipment used in environments such as factories and other manufacturing facilities
flotation costs essentially the costs of accepting a new project

Leave a Reply

Your email address will not be published. Required fields are marked *