problem1: Determine which of the following best represents the stream of income that is available to common stockholders?
[A] Gross profit
[B] Operating profit
[C] Net profit after tax and after preferred dividend payments
[D] Earnings before interest and taxes
problem2: Determine which of the following is a source of external capital?
[A] Long-term debt
[B] Retained earnings
[D] Operating income (EBIT)
problem3: What does the free cash flow method of business valuation focus on?
[A] Discount current year cash flows to the present
[B] Discount projected future cash flows to the present
[C] Discount market price added to the present
[D] Discount current year earnings to the present