Contract Law Is Significant in That It Is Basic to Other

question 70

Multiple Choice

Contract law is significant in that it is basic to other fields of law such as:

• A) sales of personal property.
• B) commercial paper.
• C) secured transactions.
• D) All of these.

Appreciate the role of cash inflows and cash outflows in determining the viability of a project.

Understand the impact of discount rates on the NPV and IRR of a project.

Learn to evaluate investment projects using profitability index.

Understand the implications of intangible benefits in investment decision making.

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Definitions:

Cumulative Preferred Stock

A type of preferred stock whose dividends accumulate if not paid in a given year and must be paid out before common stock dividends.

Dividends Per Share

The amount of dividend that a company pays out to each shareholder, expressed on a per share basis.

Common Stock

A type of security that represents ownership in a corporation, entitling the holder to vote on corporate matters.

Par Value

The face value of a bond or stock as stated by the issuing company.