1. Which of the following statements is correct about the IRR?

a. A project should be accepted if the IRR is lower than the required rate of return.

b. There are no instances where a project may have more than one IRR.

c. IRR is a measure as to how fast the company is going to recoup its investment.

d. IRR is the discount rate at which the NPV is zero.

2. In which of the following financial statements would one find cash from operating activities?

a. Income Statement

b. Balance Sheet

c. Statement of Change in Shareholder Equity

d. Statement of Cash Flow

3. Which of the following ratios represents how many times the companys earnings are investors willing to pay for its stock?

a. return on equity ratio

b. profit margin

c. fixed asset turnover ratio

d. price to earnings ratio

4. Which of the following statements is correct in regards to a dividend?

a. Dividends are a tax deduction for the company.

b. Dividends are not taxable for the shareholder.

c. Dividends are not taxable for the shareholder.

d. Dividends create a tax liability for the company.

Dividends create a tax liability for the company.