4. Which factor(s) below could cause a bond's Yield-to-Maturity to fluctuate? (A) the general interest rate levels, (B) the firm's financial performance, (C) the fixed coupon rate, (D) the bond's likelihood of default. Answer: 5. A firm reports Net Income of $50 and depreciation expense of $20. With a tax rate of 30%, how much is the "tax shield"? Answer: 6. What is the main contribution of CAPM to the capital budgeting analysis? (A) help estimate IRR, (B) help estimate cashflows, (C) help calculate net PV, (D) help estimate the discount rate. Answer: 7. When a project's Net Present Value is positive at a discount rate of 5%, and negative at a discount rate of 8%, its IRR (Internal Rate of Return) may be at (A) 6%, (B) 9%, (C) 12%, (D) 15%. Answer: Search