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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
minimize total costs
Which of the following can create ethical dilemmas between
corporate managers and stockholders?
Auditors
Board of directors
Agency relationship
Venture Capitalist
A firm is expected to pay a dividend of $2.00 next year and $2.14
the following year. Financial analysts believe the stock will be at
their target price of $75.00 in two years. Compute the value of this
stock with a required return of 10 percent.
$79.14
$65.40
$65.57
$66.67