This is the 46 section from Everyday Science. These questions and answers will be from Taxes and Investors.
Ques No.1: What will be value of $100 after two years, if the interest rate during this period is 5%?
Ques No.2: Investors require higher return on
Ans: Levered equality
Ques No.3: In a well-functioning capital market if the firm pays no taxes then what is better about borrowing?
Ans: No difference who (firm or shareholders) borrows
Ques No.4: Corporations can return cash to their shareholders by
Ans: Paying cash dividends and Stock Repurchase
Ques No.5: The money a investor receive for taking on a risk is called
Ans: Risk Premium
Ques No.6: An asset that pays a fixed amount of cash each year for a specified number of years is called
Ques No.7: Net Present Value is calculated as
Ans: PV of Cash Inflow - PV of cash outflow
Ques No.8: An investment should be accepted if its NPV is
Ques No.9: The ratio between the amount of profit and investment is called the
Ans: Rate of return
Ques No.10: An investment should be accepted if
Ans: Rate of Return > Opportunity Cost