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please answer question 42 and 43 and 44 and 45 please answer the 4 questions not

ID: 2657609 • Letter: P

Question

please answer question 42 and 43 and 44 and 45

please answer the 4 questions not just one question

41 The procedure most companies use to account budgeting projects is the a. payback period b. risk adjusted discount rate tor differences in the risks c. profitability index d. net present value profile 42. The payback period measures a project's a. profitability b.risk c. diversification impact d. liquidity 43. The financial whic al statement which presents a company's financial position at a point in time is the income statement b. balance sheet c. cash budget d. operating budget Larry Corporation's optimal capital structure is 25% common equity and 75% debt. The company's net income will be $1,200,000. The company needs to finance $1,600,000 in new projects. If the company follows a residual dividend policy, what will be their dividend payout? a. $0 b. $400,000 C. $800,000 d. $1,300,000 45. Which of the following is not one of the possible reasons for ranking conflicts in capital budgeting? The projects have different a. payback periods b. lifetimes c cash flow timing d. sizes

Explanation / Answer

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42 d liquidity Shorter the payback period greater the liquidity of project. 43 b Balance Sheet Balance sheet present the financial position of firms at a given point of time 44 c $800,000 Explanation Equity req = 1600000 x 25% = 400,000 Net Income - Equity req 1200000-400000 = 800000 45 b lifetimes payabck period , cash flow timing and sizes of project is one of possible reason for ranking conflict. Lifetime not gives the ranking conflict