Which of the following is NOT a necessary step in the DISCOUNTED CASH FLOW ANALYSIS method of valuing equity?
A) Estimate a cost of capital.
B) Estimate the present value of terminal value cash flows.
C) Calculate the present value of free cash flows over the number of years in question.
D) All of the above are necessary steps for the discounted cash flow method of valuation.
D
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Which of the following is an example of puffery?
A) an advertisement stating that a car can run 50,000 miles without an oil change B) an advertisement stating that 13 out of 15 dentists use a particular toothpaste C) an advertisement stating that an anti-aging cream reduces wrinkles in exactly a week D) an advertisement stating that a fast food chain sells the world's finest chicken
Which of the following statements regarding enterprise resource planning systems is NOT correct?
A) Most companies using ERP use their system to serve all of the information requirements. B) The primary advantage of ERP systems is that they pull together all of the classic business functions into a single, tightly integrated package. C) All of the business functions running from an ERP system use a common database. D) Making ERP systems integrate with other applications in a business presents a significant technological challenge.