1. Which of the following statements is false? A. The rejection of positive net present value projects by management is inconsistent with the objective of maximising shareholder wealth even if the reason for rejection is due to internal capital rationing. B. Management may select a project with a lower net present value because qualitative factors may render the other project less attractive C. The equivalent annual value of a project is equal to the net present value of a project held in perpetuity, divided by the required rate of return D. None of the given options is falso 2. A problem with estimating the cost of capital for a project using the CAPM derived from market data is that: A. the estimate for standard deviation is not obtainable B. a value for the risk-free rate of interest is not available C. it is not possible to estimate systematic risk from market date D. individual investment projects are not traded on a stock exchange. 3. When can the cost of capital for a company as a whole be a valid measure of the cost of capital for a particular project A. When market data are available. B. When it is not practicable to estimate the cost of capital for individual projects, C. When the risk of a new project is the same as the risk of the company's existing assets, D. When CAPM is used as an ex-post model 4. The amount of dividend that can be paid to shareholders A. depends on how profitable a business is and on the current assets of the business. B. is limited to the amount of current period profits. C. is limited to the amount of current period profits and accumulated profits. D. is limited to the amount of current period profits, accumulated profits and paid up cap