Practice - Key Financial Decisions
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Practice Questions
Test your understanding with targeted questions
What does NPV stand for?
💡 Hint: Think about the value of future cash flows.
What type of financing involves giving away ownership?
💡 Hint: Focus on how companies attract investors.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What does IRR stand for?
💡 Hint: It relates to the rate at which the investment grows.
Dividends are always distributed to shareholders.
💡 Hint: Consider how companies balance between paying dividends and growth.
2 more questions available
Challenge Problems
Push your limits with advanced challenges
A company has an initial investment of $100,000 in a project with cash flows of $30,000, $40,000, and $50,000 over three years. Calculate the NPV assuming a discount rate of 10%.
💡 Hint: Use the NPV formula to discount future cash flows.
Discuss how a change in market conditions might impact a company’s dividend policy and provide a hypothetical scenario.
💡 Hint: Consider factors like cash flow and growth expectations.
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