Question
16.a. Which of the following is NOT a component of collection float? processing float mail float availability float disbursement float All of the above are
16.a. Which of the following is NOT a component of collection float?
| processing float |
| mail float |
| availability float |
| disbursement float |
| All of the above are components of collection float |
16.b. Which of the following statements is FALSE?
| The effective after-tax interest rate is used as the cost of debt when computing a projects WACC in the WACC method |
| The pretax WACC is used to value a projects free cash flows in the APV method and the interest tax shields are valued separately in the APV method |
| The incremental payouts to equity holders associated with a project are used for valuation in the FTE method |
| The cash flows to equity holders in the FTE method are discounted using the firms WACC to find the value of a project |
| None of the above is false |
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