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50. Rate of return which is required to satisfy stockholders and debt holders is classified as__________?

A. Weighted average cost of interest
B. Weighted average cost of capital
C. Weighted average salvage value
D. Mean cost of capital

51. In cash flow estimation, depreciation is considered as________________?

A. Cash charge
B. Non cash charge
C. Cash flow discounts
D. Net salvage discount

52. Net investment in operating capital is subtracted from net operating profit after taxes to calculate___________?

A. Relevant inflows
B. Free cash flow
C. Relevant outflows
D. Cash outlay

53. Real interest rate and real cash flows do not include_____________?

A. Equity effects
B. Debt effects
C. Inflation effects
D. Opportunity effects

54. Real rate expected cash flows and nominal rate expected cash flows must be______________?

A. Accelerated
B. Equal
C. Different
D. Inflated

55. Double declining balance method and sum of years digits are included in__________?

A. Yearly method
B. Single methods
C. Double methods
D. Accelerated methods

56. Interest rates, tax rates and market risk premium are factors which an/a_____________?

A. Industry cannot control
B. Industry cannot control
C. Firm must control
D. Firm cannot control

57. In retention growth model, payout ratio is subtracted from one to calculate___________?

A. Present value ratio
B. Future value ratio
C. Retention ratio
D. Growth ratio

58. Rate of required return by debt holders is used for estimation the__________?

A. Cost of debt
B. Cost of equity
C. Cost of internal capital
D. Cost of reserve assets

59. Current option price is added to present value of portfolio for calculating_________?

A. Future value of portfolio
B. Current value of stock
C. Future value of stock
D. Present value of portfolio

60. If stock market price is higher than strike price so call option____________?

A. Price will be lower
B. Rate will be higher
C. Price will be higher
D. Rate will be lower