2.) Discuss what is meant by signaling from dividend payouts and the clientele effect involving dividend policy.

3.) Describe a sunk cost, opportunity cost and externality effect in regard to project cash flows.

1.) Find the MIRR for the following cash flows. Assume a cost of capital of 8%: Year Cash Flows 0 -$20,000 1 $8,000 2 $10,000 3 $12,000