CAPITAL BUDGETING can be most accurately defined as which of the following? O A. The process during which a firm analyzes potential projects and investment opportunities and decides which ones to accept in pursuit of value-creation on behalf of the firm's shareholders. O B. The process during which a firm and its investment bankers attempt to attract new investors. O C. A situation in which a financial manager's personal interests are in conflict with those of the firm's. O D. The process during which a firm attempts to attract customers away from its competition.

Suppose instead Larry decides to buy 100 shares of NanoSpeck stock. Which of the following statements are correct? Check all that apply. O C The price of his shares will rise if NanoSpeck issues additional shares of stock. NanoSpeck earns revenue when Larry purchases 100 shares, even if he purchases them from an existing shareholder. Expectations of a recession that will reduce economywide corporate profits will likely cause the value of Larry's shares to decline.

Quantity Price 0 $100 1 $90 2 $80 3 $70 4 $60 5 $50 6 $40 7 $30 8 $20 9 $10 10 $0 Marginal Cost $45 $40 $35 $30 $35 $40 $45 $60 $100 $180 Average Total Cost $80 $64 $52 $44 $40 $40 $52 $64 $80 $100

A firm's current profits are $900,000. These profits are expected to grow indefinitely at a constant annual rate of 2 percent. If the firm's opportunity cost of funds is 4 percent, determine the value of the firm:Instructions: Enter your responses rounded to one decimal place.a. The instant before it pays out current profits as dividends.      b. The instant after it pays out current profits as dividends.

3. Which of the following must be included in an organization’s statement of accounting profits for the statement to be of use?a. the estimated amount the organization could have earned pursuing other optionsb. the extent to which technological improvements increased productivityc. the percentages planned for reinvestment or distribution to investorsd. the period in which the profit was earned, such as a year or a quarter

Defined capital budgeting. What are the capital budgeting methods used by managers?

What is capital recovery? A.The income recognized from insurance proceeds received after a capital asset is lost due to a casualty such as theft or fire. B. Matching the income you make from using capital assets with the expenses representing the use of the assets producing the income. C.Using a capital asset that had been previously taken out of service, but is now in use again. D. When the cost of capital assets exceed the gross revenue in the acquisition year.