quiz 3.docx - Question1 0/4pts r>c YouAnswered y

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Question 1 0 / 4 pts Ongoing Operations add Value over Invested Capital provided:     r > c*   You Answered    y < c   Correct Answer    r > c      r > y     Question 2 4 / 4 pts Suppose a firm has no Debt as part of its Invested Capital.  Which of the following is  true?     c > c* > y      c < y, but c* > y   Correct!    c = c* = y
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     c* = r     Question 3 4 / 4 pts An analyst reviewing a company assigns a Horizon Value equal to Invested Capital at  the forecast period when estimating Value.  Which of the following is true about the  period beyond the forecast horozon?     r = c*   Correct!    All of the answers are true     Projects beyond the horizon earn a rate of return equal to an equally risky portfolio of  assets    Only group 2 projects are available after the forecast period     Question 4
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