Positive NPV Projects May Originate from Cost Saving Projects Such

question 92

Multiple Choice

Positive NPV projects may originate from cost saving projects such as those that

• A)reduce economies of scale.
• B)reduce product differentiation.
• C)reduce absolute cost advantages.
• D)fail to exploit advantages in distribution channels.
• E)none of the above statements are correct

Understand the concept of dividend policy in terms of target payout ratio and its effect on the firm's capital structure.

Know stock splits and their implications on shareholders' equity and stock price.

Understand the importance and components of an effective intervention contract.

Recognize the significance of clarity in setting good objectives.