1.You have just presented your investment to management, and they liked what they saw but are concerned how the returns might be affected by the new global minimal corporate income tax. To get a better understanding they asked you to perform what type of analysis? a. Calculation of the WACC b. Scenario Analysis c. Sensitivity Analysis d. Benchmarking Study e. Internal Rate of Return. f. Free Cash Flow

2.Assume a company has a capital budget of $ 1 million. It cannot spend any more. Which of the following projects should it invest in? a. NPV = 5,000 Cost = $ 500,000 b. NPV = 10,000 Cost = $ 750,000 c. NPV = minus 37 cost = $ 50,000 d. NPV = 7,000 cost = $ 450,000 e. NPV = 3,000 cost = $ 150,000 f. NPV = 400 cost = 50,000

3.ABC has a WACC of 10% can either chose Investment A with a NPV of 0 or Investment B that has an IRR of 10%. Which should it choose? Chose the best answer. a. A b. B c. Neither d. Either doesnt matter e. Both

4.ABC Companys bonds have a yield to maturity of 8% and a tax rate of 30%. What is the effective cost of debt? a. 8%. Taxes dont matter you still have to pay the 8% interest b. 6% c. 11.4% d. 5.6% e. 2.4%