Quiz Ch 08 – T/F Soft Rationing and Firm Costs
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
True or false: Soft rationing should ideally NOT impose any costs on the firm.
True or false: Soft rationing should ideally NOT impose any costs on the firm.
True or false: The payback method is rarely employed in contemporary corporate financial analysis due to its shortcomings.
True or false: The payback rule establishes that a project is considered viable if the invested capital is recouped within a specified period.
True or false: The payback rule consistently ensures that shareholders are in a better financial position.
True or false: For numerous firms, the constraints on capital funds are ‘soft,’ signifying that investors do NOT enforce capital rationing.
True or false: When dealing with projects of different durations and distinct initial investments, the equivalent annual cost method is a valuable tool for comparison.
In a company with five independent shareholders who all want personal control and use straight voting, what is the minimum percentage of outstanding shares that one shareholder must own to gain personal control over the firm?
What are the characteristics of the dividend growth model?
Which statement accurately reflects the nature of corporate dividends?
What is the term used to describe the distributions of cash or stock made by a corporation to its shareholders?