(a) Investment decisions (b) Financing decisions (c) Pricing decisions (d) Profit distribution decisions
(a) Average annual net income earned divided by the investment (b) Equating annual net cash inflows to investment (c) Ratio of present value of future cash inflows to investment making it equal to zero (d) Ratio of present value of future cash inflows to present cash outflows
(I) : The stream of dividends expected during investor’s ownership. (II) : The price expected to be realized whenever investor sells the share.