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How Should the Cash Flows of a Proposed New Project

question 52

Essay

How should the cash flows of a proposed new project be calculated?


Definitions:

Dividends Received

Earnings distributed to shareholders from the investments in other companies.

Par Value

The nominal or face value of a stock or bond as stated by the issuer.

Stock Dividend

A dividend payment made to shareholders in the form of additional shares of stock, rather than cash.

Declaration

An official statement, announcement, or the act of revealing information explicitly.

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