Author Question: The most critical aspect in determining the acceptability of a capital budgeting project is the ... (Read 14 times)

clmills979

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The most critical aspect in determining the acceptability of a capital budgeting project is the impact
  the project will have on the company's net income over the projects entire useful life.
 
  Indicate whether the statement is true or false

Question 2

If Neal O'Danny preferred stock pays an annual dividend of 2.80, and investors require a 9 return, what is
  the value of O'Danny's preferred stock today?
 
  What will be an ideal response?


Rilsmarie951

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Answer to Question 1

FALSE

Answer to Question 2

Vp = Div/R = 2.80/.09 = 31.11



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