2. If a German company sells its stock in the United States, it is termed as _____.

Yankee stock

income stock

Euro stock

growth stock

founders' stock

1. Which of the following statements is correct?

If a project's net present value (NPV) is equal to its internal rate of return (IRR), the project's value is in equilibrium.

Two firms could compute different internal rate of return (IRR) for a project if their required rates of return differ.

Everything else equal, firms with higher required rates of return generally are able to purchase more capital budgeting projects than firms will lower required rates of return.

To compute the NPV for a project, the firm's required rate of return must be known. To compute a project's internal rate of return (IRR), the firm's required rate of return is not used because the IRR is the discount rate where the project's NPV equals zero.

A project's discounted payback period (DBP) is normally shorter than its traditional payback period (PB) because DPB accounts for the time value of money, whereas PB does not