Quiz Ch 09 – Allocating Costs to a New Project
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
Which cost is typically NOT considered appropriate for inclusion when allocating expenses to a new project’s investment?
Which cost is typically NOT considered appropriate for inclusion when allocating expenses to a new project’s investment?
CSX’s stock price dipped post its 1997 Conrail purchase, taking years to rebound. This case could illustrate which behavioral finance concept?
What cognitive bias is illustrated by the tendency for high P/E firms to yield poor investments?
Which analysts focus on a company’s stock price history rather than its future profitability?
What term might describe the $25 price level if the stock price drops below the 10-day minimum of $25, causing significant selling?
When is the recovery of an additional working capital investment most likely to happen?
Is it always correct to use a company’s cost of capital to evaluate a project?
Which of the following traits is typically linked with financing type projects, based on the given options?
Why do capital budgeting projects often assume that all cash flows happen at the end of the year?
What behavior is displayed when the increase in satisfaction from gaining the next dollar of wealth is lower than the dissatisfaction from losing a dollar?