BUS 2203 PRINCIPLES OF FINANCE MILESTONE 4 SOPHIA QUESTIONS WITH VERIFIED ANSWER,100%CORRECT

BUS 2203 PRINCIPLES OF FINANCE MILESTONE 4 SOPHIA QUESTIONS WITH VERIFIED ANSWER 1 An electronics company is preparing a capital budget and considering four long-term investments. The payback period of each project is as follows: Project A: 4 years Project B: 5.2 years Project C: 2.4 years Project D: 3 years In theory, which two projects should the company pursue? ● Projects C and D ● Projects A and C ● Projects B and D ● Projects A and B CONCEPT Introduction to Capital Budgeting 2 Select a reason why a company would want to go public. ● To consolidate control of the company in the hands of management ● To increase direct oversight from investors ● To have access to cheaper capital than a private company would ● To decrease administrative costs CONCEPT Comparing Public and Private Financing 3 Which of the following is true of a market maker? ● Market makers purchase a company's securities before an IPO and then resell them at a premium. ● Market makers assist with market liquidity by facilitating the exchange of securities. ● Market makers help companies to negotiate mergers and acquisitions. ● Market makers rate the creditworthiness of the issuer. CONCEPT The Role of Investment Banks in Financing 4 Which of the following investors would likely prefer a cash dividend over a stock dividend?