题目内容
（请给出正确答案）
A、WACC method
B、APV method
C、FTE method
D、All of the above are used in capital budgeting decisions.
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更多“Which of the following methods are used in capital budgeting decisions？”相关的问题
A、that DHgate are adopted by them
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41．generating enough income to cover up its $1 billion budget．By 2010 its deficit will
42．be about $ 400m each a year．It has enough reserves to tide it over．But ultimately it
43．needs its own financial rescue plan．That is why，on April 7th，the fund's board have
44．agreed to cut costs and boost income．A quarter of the gap will be plugged
45．by cutting costs，which including 380 jobs(or 15%of the total)．The rest will come
46．from new income source&It wants to sell out 12.5%of its vast gold stocks，
47．which almounts to 403.3 tonnes．Using a(conservative)price to estimate of $ 850
48．an ounce，the fund reckons such a sale would raise about $ 11 billion．In order to
49．avoid upsetting the gold market，it would be done over the several years．The fund
50 also wants to broaden its investment of strategy．At present it may invest its reserves
51 not only in government bonds．In future．it hopes to boost returns by half a percentage
52 point every year by broadening its portfolio to include Corporate bonds and shares．
(41)
A、The WACC can be used throughout the firm as the company wide cost of capital for new investments that are of comparable risk to the rest of the firm and that will not alter the firm’s debt-equity ratio.
B、A disadvantage of the WACC method is that you need to know how the firm's leverage policy is implemented to make the capital budgeting decision.
C、The intuition for the WACC method is that the firm's weighted average cost of capital represents the average return the firm must pay to its investors (both debt and equity holders) on an after-tax basis.
D、To be profitable, a project should generate an expected return of at least the firm's weighted average cost of capital.
A、The firm's unlevered cost of capital is equal to its pre-tax weighted average cost of capital–that is, using the pre-tax cost of debt, rd, rather than its after-tax cost, rd (1 - τc ).
B、A firm's levered cost of capital is a weighted average of its equity and debt costs of capital.
C、When the firm maintains a target leverage ratio, its future interest tax shields have similar risk to the project's cash flows, so they should be discounted at the project's unlevered cost of capital.
D、The first step in the APV method is to calculate the value of free cash flows using the project's cost of capital if it were financed without leverage.
A、The APV approach explicitly values the market imperfections and therefore allows managers to measure their contribution to value.
B、We need to know the debt level to compute the APV, but with a constant debt-equity ratio we need to know the project's value to compute the debt level.
C、The WACC method is more complicated than the APV method because we must compute two separate valuations: the unlevered project and the interest tax shield.
D、Implementing the APV approach with a constant debt-equity ratio requires solving for the project's debt and value simultaneously.
A、If the debt-equity ratio changes over time, the risk of equity–and, therefore, its cost of capital–will change as well.
B、The FTE method can offer an advantage when calculating the value of equity for the entire firm, if the firm’s capital structure is complex and the market values of other securities in the firm’s capital structure are not known.
C、The FTE approach does not have the same disadvantage associated with the APV approach: We don't need to compute the project's debt capacity to determine interest and net borrowing before we can make the capital budgeting decision.
D、The WACC and APV methods compute the firm's enterprise value, so that a separate valuation of the other components of the firm’s capital structure is needed to determine the value of equity.
A、In the real world, specific projects should differ only slightly from the average investment made by the firm.
B、We can estimate rU for a new project by looking at single-division firms that have similar business risks.
C、The project's equity cost of capital depends on its unlevered cost of capital, rU, and the debt-equity ratio of the incremental financing that will be put in place to support the project.
D、Projects may vary in the amount of leverage they will support–for example, acquisitions of real estate or capital equipment are often highly levered, whereas investments in intellectual property are not.
A、From an accounting perspective, dividends generally reduce the firm’s current (or accumulated) retained earnings.
B、The way a firm chooses between paying dividends and retaining earnings is referred to as its payout policy.
C、Most companies that pay dividends pay them semiannually.
D、Occasionally, a firm may pay a one-time, special dividend that is usually much larger than a regular dividend.
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