Author: Anonymous

The internal rate of return of an investment is independent of the firm’s cost of capital.​

The marginal cost of capital rises​ 1. because the cost of retained earnings exceeds the cost of new shares2. because the cost of new shares exceeds the cost of retained earnings3. if the firm issues secured debt instead of debentures4. if the firm issues debentures instead of secured debt

The internal rate of return of an investment is independent of the firm’s cost of capital.​

An income statement shows how much the firm earned and the cash generated during a period of time.​

As a firm increases its use of debt, it becomes more financially leveraged and riskier.

The internal rate of return assumes that cash inflows are reinvested at the firm’s cost of capital.​

If the cost of capital rises, an investment’s internal rate of return falls.​

Dividend reinvestment plans permit stockholders to defer income taxes on dividends.​

The internal rate of return assumes that cash inflows are reinvested at the firm’s cost of capital.​

Regression analysis as a forecasting tool is less restrictive than the percent of sales.​