FIN 370 Course Great Wisdom / tutorialrank.com FIN 370 Course Great Wisdom / tutorialrank.com | Page 10

compounding the past dividends and past stock price appreciation
Which of these is the process of estimating expected future cash
flows of a project using only the relevant parts of the balance sheet
and income statements?
Substitutionary analysis
Incremental cash flows
Cash flow analysis
Pro forma analysis
Five years ago, Jane invested $5,000 and locked in an 8 percent
annual interest rate for 25 years (ending 20 years from now). James
can make a 20-year investment today and lock in a 10 percent
interest rate. How much money should he invest now in order to
have the same amount of money in 20 years as Jane?
$7,346.64
$5,089.91
$3,160.43
$3,464.11
The overall goal of the financial manager is to__________.
maximize net income
maximize earnings per share
maximize shareholder wealth