Cash Flow Estimation, the Existence of Externalities Should Be Taken

question 29

True/False

cash flow estimation, the existence of externalities should be taken into account if those externalities have any effects on the firm's long-run cash flows.

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Definitions:

Dividend

A portion of a company's earnings that is distributed to shareholders, typically in the form of cash payments or additional shares.

Rate Of Return

The fiscal benefit or detriment arising from an investment over a certain period, computed as a percentage of the initial cost of the investment.

Annual Percentage Rate

APR, a measure that reflects the cost of borrowing on an annual basis, incorporating not just the interest rate but also any fees and other charges involved.

Quoted Loan Rates

The interest rates that lenders provide to potential borrowers when quoting the costs of a loan.