1.Which of the following statements is true?

Select one:

a. The stock price of a company should increase after announcing a project with positive net present value of growth opportunities.

b. All of THESE

c. The stock price of a company should increase after announcing a project with an IRR greater than the discount rate.

d. The stock price of a company should increase after announcing a positive net present value project.

2.If at the beginning of the year you buy a stock for $90 and at the end of the year increases to $100, then your capital gain will be 10.00%.

Select one:

True

False

3.ABC-Consulting Ltd. estimates a risk free rate of 4% and an expected market return of 10% over the next year. If the beta of stock ACE is 2, then its expected return is equal to __________.

Select one:

a. None of THESE

b. 16%

c. 30%

d. 24%

e. 14%

4. The market value of a firm refers to its book value.

Select one:

True

False