Capital budgeting decisions are analyzed with help o... - Solved MCQs & Answer

642FinanceMedium

Capital budgeting decisions are analyzed with help of weighted average and for this purpose____________?

AComponent cost is used

BAsset valuation is used

CCommon stock value is used

DCost of capital is used

Correct answer

D. Cost of capital is used

Explanation

Cost of capital is used is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.

In calculation of net cash flow, deferred tax payments are classified as______________?

A company’s low earnings power and high interest cost cause financial changes, which have ___________?

Risk affects any firm with factors such as war, recessions, inflation and high interest rates is classified as____________?