Which of the Following Documents Would MOST Likely Come from a Planning

question 41

Multiple Choice

Which of the following documents would MOST likely come from a planning strategy meeting?

• A) Income statement
• B) Flow of cash statement
• C) Balance sheet
• D) Budget
• E) Statement of projected earnings

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Definitions:

Cost Of Capital

The necessary yield a business needs to achieve on investment endeavors to preserve its market capitalization and secure capital.

Discount Rate

The interest rate used to determine the present value of future cash flows or to evaluate the attractiveness of an investment.

Opportunity Cost

The cost of an alternative that must be forgone in order to pursue a certain action, essentially the benefits you could have received by taking another course of action.

EVA

Economic Value Added, a measure of a company's financial performance based on the residual wealth calculated by deducting its cost of capital from its operating profit.