Which One of the Following Is a Correct Method for Computing

question 65

Multiple Choice

Which one of the following is a correct method for computing the operating cash flow of a project assuming that the interest expense is equal to zero?

• A)EBIT + D
• B)EBIT - T
• C)NI + D
• D)(Sales - Costs) × (1 - D) × (1- T)
• E)(Sales - Costs) × (1 - T)

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Definitions:

Price Securities

Price securities involve determining the market value of financial instruments such as stocks, bonds, or derivatives based on supply and demand.

Asset Allocation

The process of dividing an investment portfolio among different asset categories, such as stocks, bonds, and cash.

Portfolio Construction

The process of selecting a mix of assets tailored to an investor’s financial goals, risk tolerance, and investment horizon.

Debt Securities

are financial instruments representing money borrowed that must be repaid, typically including features such as fixed interest rates and maturity dates, examples include bonds and notes.