BUS5440 Copy 8 - Question Which of the following statements...

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Question: Which of the following statements is correct? AThe shorter a project’s payback period, the less desirable the project is normally considered to be by this criterionBOne drawback of the regular payback is that this method does not take account of cash flows beyond the payback periodCIf a project’s payback is positive, then the project should be accepted because it must have a positive NPV DThe regular payback ignores cash flows beyond the payback period, but the discounted payback method overcomes this problem
Question: Which of the following statements is correct?
Question: Which of the following statements is correct? AWhen calculating the cost of preferred stock, a company needs to adjust for taxes, because preferred stock dividends are deductible by the paying corporationBAll else equal, an increase in a company’s stock price will increaseits marginal cost of retained earnings, rsCAll else equal, an increase in a company’s stock price will increaseits marginal cost of new common equity, reDSince the money is readily available, the after-tax cost of retained earnings is usually much lower than the after-tax cost of debtEIf a company’s tax rate increases but the YTM on its noncallable bonds remains the same, the after-tax cost of its debt will fall

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