In cash flow estimation, depreciation shelters companys income from_______?

A: Expansion

B: Salvages

C: Taxation

D: Discounts

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Taxation

Weighted average cost of debt, preferred stock and common equity is classified as_____________?

A: Cost of salvage

B: Cost of interest

C: Cost of taxation

D: Cost of capital

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Cost of capital

In cash flow estimation and risk analysis, real rate will be equal to nominal rate if there is__________?

A: No inflation

B: High inflation

C: No transactions

D: No acceleration

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No inflation

Rate of return which is required to satisfy stockholders and debt holders is classified as__________?

A: Weighted average cost of interest

B: Weighted average cost of capital

C: Weighted average salvage value

D: Mean cost of capital

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Weighted average cost of capital

In cash flow estimation, depreciation is considered as________________?

A: Cash charge

B: Non cash charge

C: Cash flow discounts

D: Net salvage discount

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Non cash charge

Net investment in operating capital is subtracted from net operating profit after taxes to calculate___________?

A: Relevant inflows

B: Free cash flow

C: Relevant outflows

D: Cash outlay

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Free cash flow

Price of an outstanding bond decreases when market rate is_______________?

A: Increased

B: Decreased

C: Earned

D: Never changed

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Increased

Right held with corporations to call issued bonds for redemption is considered as___________?

A: Artificial provision

B: Call provision

C: Redeem provision

D: Original provision

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Call provision

Required rate of return in calculating bonds cash flow is also classified as_______?

A: Going rate of return

B: Yield

C: Earning rate

D: Both A and B

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Both A and B

Method uses for an estimation of cost of equity is classified as___________?

A: Market cash flow

B: Future cash flow method

C: Discounted cash flow method

D: Present cash flow method

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Discounted cash flow method

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