Question 22 The required return of a stock is defined as: Next year's dividend divided by the current price. O The capital gains yield plus the dividend yield. The rate at which a stock increases in value. The increase in the value of a share of stock over a period of time. O The payment by a corporation to shareholders in the form of cash or stock. 49 O mo Question 11 1 pts The Capital Budgeting method called the discounted payback period (DPP) is better than the ordinary payback (PP) period because The DPP does not reject positive NPV projects. The DPP is not biased against long-term projects. The DPP is biased towards liquidity. The DPP is easy to understand and use. The DPP takes into account time value of money. 1 pts A conventional cash flow is defined as a series of cash flows where: O All of the cash flows are positive. The sum of the cash flows is equal to zero. The total of the cash flows is positive. O The present value of the cash flows is equal to zero. o Only the initial cash flow is negative. Question 6 1 pts investment criterion, one of the risks it takes is that it may ignore some A Company using the future cash flows. O NPV Payback rule O IRR O Profitability Index O AAR 1 pts Question 40 When the available cash balance at the bank is less than the book balance, this is called: O Collection Float Disbursement Float Net float O Deficit Surplus Question 39 The precautionary, speculative and transaction motives are the reasons why is important. risk management o working capital management O profitability Liquidity O financial leverage Question 38 1 pts A Company is holding large sums of cash mainly because it would need a large amount of cash in the event of another pandemic. This is a[n). _motive for holding cash. Transactions Precautionary Speculative Adjustment Holding pts