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66. Average Rate of Return can be obtained by
Average Annual Profit/Sales
Sales/Profit x 100
Average Profit/Average investment
Sales/Cash
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67. Payback period computed by
Profit/Sales x 100
Initial Investment (Cost of Project)/Annual Cash Inflow
Initial Investment/100
Profit/Expenses x 100
68. If the intrinsic value of a stock is greater than its market value, which of the following is a reasonable conclusion?
The stock has a low level of risk.
The stock offers a high dividend payout ratio
The market is undervaluing the stock.
The market is overvaluing the stock.
69. Which are the functions of finance as per John J. Hampton?
Liquidity function
Managing assets
Managing funds
All of the above
70. "Capital budgeting as acquiring inputs with long-run return". Who said?
Richard and Green
J. Betty
Charles Horngreen
Lynch
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