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*5. A common use of the IRR method by corporations is to compare a number of investment alternatives for a project. 6. As an alternative

*5. A common use of the IRR method by corporations is to compare a number of investment alternatives for a project.

6. As an alternative to stock options, the award of performance shares based on an objective performance measure are favored by institutional investors.

7. The objective of the poison pill strategy is to deter a corporate raider with the threat of significant dilution of ownership interest. 8. Stock buybacks should be considered with other alternative investments, using the same criteria of payback, NPV or IRR.

9. A stock repurchase will increase an organizations earnings per share.

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