The hurdle rate is - Study guides, Class notes & Summaries

CAIA Level 1 Exam Questions And Answers 100% Verified Define investment - answerInvestment is deferred consumption List the four major types of real assets other than land and other types of real estate. - answerNatural resources, commodities, infrastructure, and intellectual property. List the three major types of alternative investments other than real assets in the CAIA curriculum. - answerHedge funds, Private Equity, and Structured Products Name the five structures that differentiate ...

MBA PREP CFIN REVIEW EXAM TEST BANK 100+ QUESTIONS WITH REVISED AND UPDATED ANSWERS Synergy between two companies - Answer-complementary situation where value is created in the joining of the firms, could be defined by purely qualitative benefits legalities determine whether a merger should occur; a valuation determines what form the business combination shall be - Answer-False Unlike capital budgeting derivations, it is best when evaluating mergers to rely son a single quantitative me...

1. Identify which of these IS NOT a positive of using revenue management strategies and tactics: Motivate employees Increase revenues and profitability Serve more guests Increase market share - ️️Motivate employees 2. The Hurdle Rate is...? The average rate for a given day The lowest rate for a given day The maximum rate for a given day The highest rate for a given day - ️️The lowest rate for a given day 3. A benefit of variable pricing within revenue management is the smo...

BFIN 300 Final Exam Latest Update Graded A+ Payments for Amortizing Loans both interest and principal payments Perpetuity An annuity stream where the payments occur forever is called All else equal, the more frequently interest is compounded the: Higher the future value AND present value. Corporations Can raise large amounts of capital generally easier than partnerships can Sole Proprietorship Is personally responsible for all of the company's debts Sarbanes-Oxley Act of 2...

FIN 470 Final Exam Practice Questions and Answers As a financial analyst, you are tasked with evaluating a capital-budgeting project. You were instructed to use the IRR method, and you need to determine an appropriate hurdle rate. The risk-free rate is 4%, and the expected market rate of return is 11%. Your company has a beta of 0.75, and the project that you are evaluating is considered to have risk equal to the average project that the company has accepted in the past. According to CAPM,...

What assets are often chracterized as traditional by some and alternatives by others in: hedge funds, private equity, and real assets - Answer Hedge Funds: Liquid alternative mutual funds Private Equity: Closed-end funds with illiquid holdings Real Assets: Public real estate and public equities of corporations with performance dominated by stable positions in real assets 4 major methods of analysis that distinguish the analysis of alternative investments from trad. investments - Answer ...

- correct answers--The levels of interest on loans change so you may want to reduce your interest rate on a loan, or you may require more money. -LTVs are low -Interest rates are lower than your current rate -Low-risk of not meeting new debt service -Unlock equity (equity extraction) that may be used for other investments, buy back stock, etc. -HOWEVER, terms must be favorable and refinancing must have a strategic purpose: ---Lower interest ---Appropriate term ---Investors hurd...

The hurdle rate is - ANSWER-the lowest rate for a given day Revenue Management can be defined as - ANSWER-A set of strategies and techniques used to sell the right product, to the right customer, at the right time and at the right prices What is the main reason that travelers today have more clout than ever before - ANSWER-They have information on virtually everything at their fingertips Identify which of these is not a positive of using revenue management strategies and tactics: - ANSW...

revenue management strategies and tactics Correct Answer--increase revenues and profitability -increase market share -serve more guests hurdle rate Correct Answer-lowest rate for a given day smoothing demand Correct Answer-benefit of variable pricing within rev management revenue management Correct Answer-a set of strategies and techniques used to sell the right product, to the right customer, at the right time, for the right price revenue magement is a set of revenue maximization ...

The advantage of using the marginal cost of capital as a company's average hurdle rate is correct answers capital market estimations of risk are probably more objective than the company's, it reflects the incremental cost of funding future investments, and it is the basis of the market's assessments of a company's investment decisions It is important for managers to establish an average hurdle rate because:a. hurdle rates are varied in accordance with risk, b. in order to vary hurdle rate...