FM

Edit Answers
123456789101112131415161718
Across
  1. 3. Dividend policy is …………….. when the timing of dividend payments doesn’t affect the present value of all future dividends.
  2. 4. The discount rate that equates the present values of cash inflows with the initial investment associated with a project, is called…………………….. rate of return.
  3. 5. Market efficiency implies that market participants are …………….
  4. 9. …………………… rate represents the rate of return at which the net present value profile of one project intersects the net present value profile of another project.
  5. 10. As per the signalling theory, debt issues are considered as ………….. news.
  6. 11. Capital budgeting decisions relate to ………………assets which are in operation and yield a return over a period of time. (includes hyphen)
  7. 13. ……………….. is the top line in an income/ Profit and loss statement.
  8. 15. ……………………….. theory disregards the concept of target/optimal capital structure. (No space)
  9. 18. The difference between the expected return on a market portfolio and the risk-free rate, is called market ……………………….. (No space)
Down
  1. 1. ………………. Costs are the costs associated with the litigation arising from a liquidation or bankruptcy.
  2. 2. Equivalent Annual Cost method allows a company to compare the cost-effectiveness of various assets that have ………………… life spans.
  3. 6. Unlevered beta will always be …………………..than the levered beta.(Assuming beta are positive)
  4. 7. Interest payments are tax deductible, where ………………… are not tax deductible.
  5. 8. Dividends are a ……………….. expense.
  6. 9. ……………………………..is the financial situation in which a firm has only fixed amount to allocate among competing capital expenditures.
  7. 12. The more capital intensive industries, such as air transport, television broadcasting stations, and hotels, tend to use greater ……………..leverage.
  8. 14. Using the Profitability Index, a project will qualify for acceptance if its PI ……………… one.
  9. 16. A stock repurchase reduces ………… while leaving debt unchanged.
  10. 17. The …………………. lease transfers ownership of the property to the lessee by the end of the term of the lease
  11. 18. The cost of capital depends on the …………of the project, not the source of the money.