Foundations Of Business Finance (Peregrine) Question With Correct Answers 2023

A __________ option gives the holder the right to sell, or put out, shares of a stock at a specified price during the option period. {Ans: put}Scenario analysis {Ans: A risk analysis technique that helps decision makers get an idea of the range of possible outcomes when a project is purchased}__________ __________ shows the total proceeds from the sale of preferred stock. {Ans: Preferred stock}Repurchase agreement (repo) {Ans: An arrangement in which one firm sells some of its financial assets to another firm with a promise to repurchase the securities at a higher price at a later date}Operating flows {Ans: Cash inflows and outflows directly related to the production and sale of products or services}__________ current liability changes occur automatically with changes in sales. They must, therefore, be deducted from current assets in order to find the net change in short-term investment for the determination of free cash flow. {Ans: Spontaneous}