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3 4 The concept of optimum capial structuide is based on the assumption that the prudent use of debt can lower the firms 3 6

34 The concept of optimum capial structuide is based on the assumption that the prudent use of debt can lower the firms
36. The optimum capilal structure is the ane that?
37. Preferred stock is considered as debt to the exteri ingit False catrogers
40. The capitar budjeteng process must follow an idenally presentied order because there are many steps and elements in the whole procoss of planing capital expenditures true of Fatise
41. The nominal rate of interest equals the effective rale of wnterest ony if hiterest is compounded sermannually, True or False information and market prices adjust slowly to new intormation. True or False stock because retained earnings do not involve flotation costs. True or False
44 The term annuty usually refersto soriesolann walpayments (recelpts) of an equal amount, but it may also apply to a payment? schedule with various intervals, fe, such as 30-dayntervaior 6-month interval. True or False
45. A project with an investment of $10000 has net cash flowes of 50.000 $3,000, and $1,000 for each of the noxt three years. Compute the average rate of return for the project?
46 A company has debt with a market value of $90,000 and commorn equity with a market value of $120,000 The component costs of the capital structure for the company we 7.4 percent for bond after taxes and 16.4 percerit tor
47 The net present value method, the internat rate of return method and the fofitabily index consider the time value of money True or False
48 The value of any securty is equal to the compound value of cash flows expected to be received by the anvestor. True or False.
49. The opportunity cost is the rate of return that the fur dy could eamn if
50 Diacount rate consists of the rale of return on a riskless investment play a premium based on?

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