Question
1. When is a standard capital budgeting project acceptable? A. When the NPV is positive and the IRR is below the required rate of return.
1. When is a standard capital budgeting project acceptable?
A. When the NPV is positive and the IRR is below the required rate of return.
B. When the NPV is negative and the IRR is below the required rate of return.
C. When the NPV is positive and the IRR is greater than the required rate of return.
2. After GM filed for Chapter 11 bankruptcy, all of its common stocks had been removed from NYSE. Since then, there was no GM stock trading in any of the major stock exchange. The big event for GM in November 2011 was to list the new stocks in NYSE. This is an example of _________.
A. | Seasoned offering | |
B. | Unseasoned offering | |
C. | Private placement | |
D. | Underwriting |
D. When the NPV is zero and the IRR is greater than the required rate of return.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started