1. Two considerations that cause a corporation's cost of capital to be different than its investors' required returns are a. corporate taxes and the earned income tax credit. b. individual taxes and dividends. c. corporate taxes and flotation costs. d. individual taxes and corporate taxes. 2. If the Beta for Stock X equals zero, then according to the CAPM: -a. stock X's required return is equal to the risk-free rate of return. b. stock X has a guaranteed return. c. stock X's required return is equal to the required return on the market portfolio d. stock X's required return is equal to the stock's standard deviation. 3. A corporation should use the and non-repeatable projects decision criteria when ranking independent a. Discounted Payback Period b. Modified Internal Rate of Returrn CNet Present Value -d. Profitability Index I of 11