Chapter 18
Valuation and Capital Budgeting for the Levered Firm
Multiple Choice Questions
计算机专业英语1. The flow-to-equity (FTE) approach in capital budgeting is defined to be the:
A. discounting all cash flows from a project at the overall cost of capital.
acpi是什么B. scale enhancing discount process.
C. discounting of the levered cash flows to the equity holders for a project at the required return on equity.
rangD. dividends and capital gains that may flow to a shareholders of any firm.
E. discounting of the unlevered cash flows of a project from a levered firm at the WACC.
2. The acronym APV stands for:
siren
tongue的音标A. applied prent value.
B. all purpo variable.
C. accepted project verified.
D. adjusted prent value.
E. applied projected value.
celebrate怎么读3. A leveraged buyout (LBO) is when a firm is acquired by:
A. a small group of management with equity financing.
B. a small group of equity investors financing the majority of the price by debt.
C. any group of equity investors when the majority is financed with preferred stock.
D. any group of investors for the asts of the corporation.
E. None of the above.
乘客英文版
4. Discounting the unlevered after tax cash flows by the _____ minus the ______ yields the ________. overlap
A. cost of capital for the unlevered firm; initial investment; adjusted prent value.
B. cost of equity capital; initial investment; project NPV.
period是什么意思C. weighted cost of capital; fractional equity investment; project NPV.
D. cost of capital for the unlevered firm; initial investment; all-equity net prent value.
收到 英文E. None of the above.
5. The acceptance of a capital budgeting project is usually evaluated on its own merits. That is, capital budgeting decisions are treated parately from capital structure decisions. In reality, the decisions may be highly interwoven. This may result in:
