A financial intermediary transfers

In an ordinary annuity, the payments are made at the beginning of the year.​

A cash budget seeks to determine estimated costs and revenues in order to forecast earnings.​

One type of risk adjustment alters the firm’s cost of capital for the probability of occurrence.​

Dividend reinvestment plans are

Dividend reinvestment plans permit the stockholder to reinvest dividends as they are received.​

If profit margins increase as sales increase, the need for external finance is reduced.​

If a firm has retained earnings, it has an equal amount of cash.​

In general, banks prefer loans that stress liquidity and safety.

If the cost of capital exceeds the internal rate of return, the firm should not make the investment.​