Discounted cash flow analysis Can be used to determine the attractiveness of an investment project Determines the amount of capital returned to shareholders Excludes opportunity costs Considers sunk costs QUESTION 11 Which of the following is not a potential benefit of an IPO? improved access to capital markets guaranteed dividend payment positive employee compensation incentives increased liquidity QUESTION 12 Which of the following is true about stocks? They are always the best investment for a risk adverse investor A company's stock price represents the present value of the expected future cash flows Stocks are less risky than the long-term bonds of the company Stock and equity establish the operating equity of the company