A: Corporations should invest in all opportunities where probable returns exceed the cost of capital
B: Better quantification of future uncertainty and risk is the key to more effective resource allocation
C: Planning and capital budgeting are two separate processes --- capital budgeting is a financial activity
D: Top management’s role is to challenge the numbers rather than the underlying thinking.
举一反三
- Which one of the following terms is defined as the management of a firm's long-term investments? A: working capital management B: financial allocation C: agency cost analysis D: capital budgeting
- Capital budgeting is the process of managing afirm’s:
- Which TWO of the following are principles underlying the Beyond Budgeting approach? A: Goals should be based on fixed, cascaded targets B: Move towards accountable teams avoiding hierarchical control C: Use traditional budgeting in conjunction with other techniques D: Use adaptive management processes rather than the more rigid annual budget
- Which of the following statements is FALSE? A: Many projects use a resource that the company already owns. B: When evaluating a capital budgeting decision, we generally include interest expense. C: Only include as incremental expenses in your capital budgeting analysis the additional overhead expenses that arise because of the decision to take on the project. D: As a practical matter, to derive the forecasted cash flows of a project, financial managers often begin by forecasting earnings.
- In general, financial management consists of four kinds of management: investment management, capital raising management，working capital management and profit distribution.? 正确|错误
内容
- 0
Which are the advantages of issuing common stocks to raise money？ A: Increase the company's financing ability B: Reduce financial risk of the company C: Reduce the capital cost of the company D: No restrictions on the use of capital
- 1
The average of a firm's cost of equity and after tax cost of debt that is weighted based on the firm's capital structure is called the: A: reward to risk ratio B: weighted capital gains rate C: structured cost of capital D: weighted average cost of capital
- 2
Which one of the following terms is defined as the mixture of a firm's debt and equity financing? A: cash management B: cost analysis C: capital structure D: working capital management
- 3
When a companymeasures performance using residual income, managers tend to invest in anyproject earning more than the cost of capital and thus raise the firm’s totalprofits.
- 4
Cost of capital isthe company’s cost of capital multiplied by the amount of the investment.