1) What does NPV = 0 mean?

a) Projects cash inflows does not cover the initial outlay.

b) Project does not meet the average required return across claimants.

c) Shareholders should not accept this type of project.

d) Providers of capital are satisfied.

2) What is the dividend yield on a stock?

a) Stock price divided by annual dividend

b) Change in stock price divided by purchase price

c) Annual dividend divided by current stock price

d) Initial stock price divided by change in stock price