38) Aria is losing significant market share and thus its managers have decided to decrease the firm's annual dividend. The last annual dividend was $.86 a share but all future dividends will be decreased by 0.8 percent annually. What is a share of this stock worth today at a required return of 17.8 percent? A) $4.99 B) $4.06 C) $4.41 D) $4.95 E) $4.25

39) A firm's projected future cash flows due to a new project are referred to as: A) project cash flows. B) eroded cash flows. C) opportunity cash flows. D) deviated projections. E) none of the above.

40) Tax savings due to tax deductibility of depreciation are also called: A) erosion. B) opportunity cost. C) adjustment. D) credit. E) tax shields.

41) Estimation risk is best defined as: A) reality risk. B) management risk. C) value risk. D) forecast risk. E) potential risk.

42) An analysis to determine the changes in NPV due to changes in the sales quantity is called: A) Growth analysis B) Opportunity cost analysis C) Erosion planning D) Scenario analysis E) Sensitivity analysis

43) When modeling an NPV of a project, an option to expand into allied businesses in the future is called? A) Strategic option B) Hard rationing C) Contingency option D) Capital rationing option E) Soft rationing