✅ The correct answer is C.
Profitability index in capital budgeting is used for evaluating projects. The profitability index is an appraisal technique applied to potential capital outlays and is a useful tool for ranking projects because it allows you to quantify the amount of value created per unit of investment.

✅ The correct answer is C.
The amount of current assets that varies with seasonal requirements is referred to as Temporary working capital. Temporary working capital (TWC) is the temporary fluctuation of networking capital over and above the permanent working capital.

✅ The correct answer is A.
Bonds issued by local and state governments with default risk are municipal bonds. Municipal bonds are loans investors make to local governments.

✅ The correct answer is C.
Expected dividend yield = Expected rate of return – Constant growth rate
= 13 5% – 9.5% = 4.00%

✅ The correct answer is C.
Formula Sales revenue minus operating cost and taxes minus operating capital investments is used to calculate free cash flows. Free cash flow is the cash a company produces through its operations, less the cost of expenditures on assets.

✅ The correct answer is D.
A techniques uses to identify financial statements trends are included in common size analysis and percent change analysis.