7.Which of the following is NOT a correct statement regarding break-even?

A.Accounting break-even is the sales level that results in zero project net income.

B.The cash break-even is the sales level that results in zero OCF.

C.The financial break-even is the sales level that results in an NPV greater than zero.

D.If there is depreciation, the accounting break-even will exceed the cash break-even.

E.Of the three break-evens, the financial break-even point is typically the highest.

8.Which of the following are arguments for a high dividend payout?

I. A current dividend is worth more than a future dividend.

II. Some clientele groups prefer current income.

III. Flotation costs exist in the real world.

IV. Firm's dividend payout is restricted by a bond indenture.

A.I and II only

B.II and IV only

C.I, II, and III only

D.I, II, and IV only

E.I, II, III, and IV