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Author Question: Which of the following are included in the terminal cash flow? A) the expected salvage value of ... (Read 34 times)

sam.t96

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on: Jul 10, 2018
Which of the following are included in the terminal cash flow?
 
  A) the expected salvage value of the asset
  B) recapture of any working capital increase included in the initial outlay
  C) any tax payments or receipts associated with the salvage value of the asset
  D) all of the above

Question 2

AFB, Inc declared a dividend of 2 per share, which was an increase of 25 from the prior year, yet
  AFB, Inc stock declined by 3 the day of the announcement.
 
  DAS, Inc declared a dividend of 2
  per share, which was the same as the prior year, and its stock increased in value by 2 on the day
  of the announcement. These events could be most readily explained by the
  A) clientele effect. B) expectations theory.
  C) residual dividend theory. D) information effect.


harveenkau8139

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Reply #1 on: Jul 10, 2018
Answer to Question 1

D

Answer to Question 2

B


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