A project with an initial outlay of $1,000,000 and free cash flows of $500,000 per year for the next three years is being evaluated. What is the IRR of the project? 50% 18.24% 10.15% O 23.38% FINA, Inc. wants to issue preferred stocks and hires UBS. UBS advises that $12 dividend paying stocks of FINA will sell for $110. FINA is subject to 30% tax rate and UBS charges $10/share for its services. What is the cost of preferred stocks for FINA, Inc. 2 O 10.91 % 8.4% O 12% O 7.64% All premium bonds are also high-yield bonds. True False Which of the following is true about CAPM? O CAPM assumes the risk-free rate is zero. O CAPM assumes the beta of the market is 1. O CAPM assumes a company s beta cannot be a negative number. O CAPM assumes the market rate is always 10% In financial markets Junk Bonds refer to bonds rated O BB and below O CCC and below O DDD and below O None of the above, junk bonds could be rated anything from AAA to D Euro-bonds are bonds used in Euro currency. That is they pay interest and principal in Euro. O True O False