Question
1) What must always be true of the terminal growth rate assumption in a valuation? It must be less than the cost of capital It
1) What must always be true of the terminal growth rate assumption in a valuation?
It must be less than the cost of capital
It should move inversely to reinvestment and risk at the firm
It should be either 3% or 4%
2) Which of the following is not a measure of industry competitiveness?
Concentration ratio
Capital intensity ratio
Herfindahl index
3) Which of the following would not typically be considered part of the PIB?
An Excel file with a three-statement financial model
A pdf of the companys latest SEC filing
A Word document of the latest earnings call
3) If days in accounts payable increases, what happens to the cash conversion cycle?
Decreases
Depends on whether the change occurs due to changes in AP or COGS
Increases
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