Author: Anonymous

If forecasting over-predicts the level of an asset, the firm will over-plan its financial needs.​

Analyzing an investment from a stand-alone perspective avoids considering portfolio effects.​

Low correlation among cash inflows is associated with lower net present values.​

Analyzing an investment from a stand-alone perspective avoids considering portfolio effects.​

Risk adjustments favor the use of net present value over the internal rate of return.​

If fixed asset requirements increase with increases in sales, the firm will need more sources of finance.​

In order to maximize the value of the firm, the financial manager must determine the firm’s optimal capital structure.

Which of the following bonds are exempt from federal income taxation?​

The net present value of an investment cannot be negative.​

​If percent of sales is used to forecast, increased sales implies inventory as a percent of sales increases.