1-Aconservative financing policy indicates that investment in fixed and current assets is funded by long-term sources of financing and this policy leads to   a-Low risk of real and financial hardship –   b-Low interest rates and apayment premium borne by the company 2- The payback period method in evaluating projects depends on extracting the time period required to cover the investment amount under this method   a-we tuke only cashflows to cover the investment size   b-we talk cash flows to cover with cash flows expected to be collected after the payback period 3- suppose you have a stock and this stock achieves a loss in half of the period of 20% and makes a profit in the other half of the period of 70% and therefore the expected rate of return per share will     ER =25%     ER=50%     ER=65%

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter12: Corporate Valuation And Financial Planning
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1-Aconservative financing policy indicates that investment in fixed and current assets is funded by long-term sources of financing and this policy leads to

 
a-Low risk of real and financial hardship –
 
b-Low interest rates and apayment premium borne by the company
2-
The payback period method in evaluating projects depends on extracting the time period required to cover the investment amount under this method
 
a-we tuke only cashflows to cover the investment size
 
b-we talk cash flows to cover with cash flows expected to be collected after the payback period
3-
suppose you have a stock and this stock achieves a loss in half of the period of 20% and makes a profit in the other half of the period of 70% and therefore the expected rate of return per share will
 
 
ER =25%
 
 
ER=50%
 
 
ER=65%
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