Statement Response: payback rule, IRR rule, stock prices
Not what you're looking for?
1. "You say stock price equals the present value of future dividends? That's crazy! All the investors I know are looking for capital gains."
2.. "I like the IRR rule. I can use it to rank projects without having to specify a discount rate."
3. "I like the payback rule. As long as the minimum payback period is short, the rule makes sure that the company takes no borderline projects. That reduces risk."
Purchase this Solution
Solution Summary
The solution responds to three statements on capital budgeting.
Purchase this Solution
Free BrainMass Quizzes
Learning Lean
This quiz will help you understand the basic concepts of Lean.
Marketing Management Philosophies Quiz
A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.
IPOs
This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)
Situational Leadership
This quiz will help you better understand Situational Leadership and its theories.
Understanding Management
This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.