A Positive Value for PRESENT VALUE OF GROWTH OPPORTUNITIES Suggests

question 66

Multiple Choice

A positive value for PRESENT VALUE OF GROWTH OPPORTUNITIES suggests that the firm has:

• A)a positive return on equity.
• B)a positive plowback ratio.
• C)investment opportunities with superior returns.
• D)a high rate of constant growth.

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Definitions:

Batches

Distinct groups of items or quantities produced or processed at the same time.

Overhead Cost

All costs on the income statement except for direct labor, direct materials, and direct expenses. Overhead costs relate to business operations and are not directly tied to a specific product or activity.

Activity Cost Pools

Categories in activity-based costing where costs are accumulated before being assigned to products or services based on their consumption of activities.

Machine-Hours

A measure of the amount of time machines are used in the production process, often used for allocating manufacturing overhead.