Principles of Finance: Milestone 4
(Sophia Learning)
⏹ When performing capital budgeting, __________ incurred by a
project are irrelevant to future investment decisions. Answer: sunk costs
⏹ Which of the following is an advantage of bonds for a potential
investor? Answer: They offer predictability when it comes to long-term
financial planning.
⏹ For which company can trend analysis be most useful? Answer: An
established hotel company that has made very few changes to its
business model
⏹ When does a company know that it has sufficient working capital?
Answer: When it can meet all of its short-term expenses and debts with
current assets
⏹ If you invest in two stocks, and their values both rise on one day and
then fall on the next day, they have __________. Answer: a large
covariance
⏹ Nadia is going to receive $1,000 from her grandparents next year.
According to the time value of money, the gift of $1,000 is worth
__________ a gift of $1,000 if she received it today. Answer: less than
(Sophia Learning)
⏹ When performing capital budgeting, __________ incurred by a
project are irrelevant to future investment decisions. Answer: sunk costs
⏹ Which of the following is an advantage of bonds for a potential
investor? Answer: They offer predictability when it comes to long-term
financial planning.
⏹ For which company can trend analysis be most useful? Answer: An
established hotel company that has made very few changes to its
business model
⏹ When does a company know that it has sufficient working capital?
Answer: When it can meet all of its short-term expenses and debts with
current assets
⏹ If you invest in two stocks, and their values both rise on one day and
then fall on the next day, they have __________. Answer: a large
covariance
⏹ Nadia is going to receive $1,000 from her grandparents next year.
According to the time value of money, the gift of $1,000 is worth
__________ a gift of $1,000 if she received it today. Answer: less than
