Which of the Following Is Not One of the Most

question 11

Multiple Choice

Which of the following is not one of the most common methods used in capital budgeting?

• A)payback method
• B)internal rate of return method
• C)net present value method
• D)anticipated change in net income method

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Definitions:

Par-value Share

A stock with a face value as specified in the corporate charter beyond which it cannot be sold upon initial offering.

Non-par-value Share

Shares issued without a nominal or face value, with their selling price determined by the market or by the issuing company.

Distinguish

To recognize or treat as different; to make a clear separation between two or more things.

Share

The means of acquiring funds from a large number of sources to run a corporation; an interest in a corporation held by an investor.