A Firm's Net Investment Is

question 23

Multiple Choice

A firm's net investment is:

• A)its capital expenditures in excess of depreciation.
• B)its free cash flow net of increases in working capital.
• C)its enterprise value in excess of debt owed.
• D)the market value of equity plus debt.

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Definitions:

Tax

A tax is a compulsory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization.

Consumer Surplus

The discrepancy between the amount consumers are prepared to spend on a product or service and the actual price they pay.

Consumer Surplus

The gulf between the aggregate amount consumers are willing to allocate for a good or service and what they actually end up paying.

Producer Surplus

The variance between the minimum amount producers are prepared to take for a product and the actual payment they get.