Fianacial management 16-20

16. If a company expects its dividends to grow at a constant rate into the foreseeable future, we can value its shares using PO-D1/(R-g). What does g stand for? A- Risk-free rate B- Inflation C- Growth D- None 17. Which of the following(s) are/is not simplifying assumption(s) for future dividends? A-Zero growth B- Constant growth C- Negative growth D- Constant growth after some period of time 18. An investment project provides cash inflows of 771 per year for eight years. What is the project payback period if the initial cost is 2,380? A- 5.78 years B- 4.2 years C- 4.68 years D-3.09 years 19. At a required return of 7 percent, should the firm accept this project? What is NPV? The Project has expected cash flows of Euro (30.000) in year zero, Euro 15.000 in year 1, Euro 17.000 in year 2, and Euro 14.000 in year 3. A- Euro (100) and reject B- Euro 200 and reject C- Euro 6.975 and accept D- Euro 10.295 and accept 20. One of the big criticism of the payback period is that it ignores the.......... A-Time value of Money B-Biased towards liquidity C-Easy to understand D-None