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Author Question: AFB, Inc purchases a new delivery van which is expected to increase cash flows for the next 10 ... (Read 41 times)

neverstopbelieb

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on: Jul 10, 2018
AFB, Inc purchases a new delivery van which is expected to increase cash flows for the next 10
  years. AFB can finance the purchase with a standard 48-month vehicle loan, or by getting a 10-year
  loan from the bank.
 
  According to the hedging principle, AFB should
  A) use the 10-year financing in order to match the cash flow stream from the asset with the
  financing repayments.
  B) use the 48-month loan since it matches the type of asset with the type of loan.
  C) avoid using either loan and finance the truck with current cash reserves to avoid interest
  expense.
  D) use either type of financing, but hedge the risk in the options market.

Question 2

Which of the following is true if dividend policy is irrelevant?
 
  A) The information effect exists. B) Tax deferral on capital gains exists.
  C) The clientele effect exists. D) Perfect capital markets exist.
Foundations of Finance ¦ Keown, Petty, Martin ¦ 9th Edition
Buy Test-Bank


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nanny

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Reply #1 on: Jul 10, 2018
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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neverstopbelieb

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Reply 2 on: Jul 10, 2018
Wow, this really help

smrtceo

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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