Net Present Value Quiz PDF: Questions and Answers - 75

MCQ 371: The project whose cash flows are sufficient to repay the capital invested for rate of return then the net present value will be

1. negative
2. zero
3. positive
4. independent

MCQ 372: The present value of future cash flows is $2000 and an initial cost is $1100 then the profitability index will be

1. 0.55
2. 1.82
3. 0.55
4. 0.0182

MCQ 373: The stock selling price is $65, expected dividend is $20 and cost of common stock is 42% then expected growth rate will be

1. 0.1123
2. 0.1123
3. 11.23
4. 11.23

MCQ 374: In retention growth model, the percent of net income firms usually pay out as shareholders dividends, is classified as

1. payout ratio
2. payback ratio
3. growth retention ratio
4. present value of ratio

MCQ 375: The markets dealing the loans of autos, education, vacations and appliances are considered as

1. consumer credit loans
2. commercial markets
3. residential markets
4. mortgage markets