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ABC Inc. estimates that its average-risk projects have a cost of capital of 10%, its below-average risk projects have a cost of capital of 8%,

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ABC Inc. estimates that its average-risk projects have a cost of capital of 10%, its below-average risk projects have a cost of capital of 8%, and its above-average risk projects have a cost of capital of 12%. Which of the following projects (A, B, and C) should the company accept? All of the projects should be accepted. None of the projects should be accepted. O Project A, which is of average risk and has a return of 9%. O Project B, which is of below-average risk and has a return of 7.5%. Project C, which is of above-average risk and has a return of 13%. a You work for Bluth Company, a constant growth firm which recently paid a dividend of $1.75. Bluth just announced it is investing in several safe projects that will decrease the firm's growth rate and its cost of equity. If the decreases in the growth rate and cost of equity are both 2%, what will happen to the firm's stock price? The price will increase. The price could increase or decrease. The price will decrease. I registered for PHED 1080 (Bowling) this semester and am confused why we are still talking about finance The price will remain constant. A project has an up-front cost of $100,000. All subsequent cash flows are positive. The project's required return is 8 percent and its net present value is $10,000. Which of the following statements is most correct? The project's internal rate of return is greater than 8 percent. The project's internal rate of return is less than 8 percent. The project's internal rate of return equals 8 percent. You need more information to determine whether the internal rate of return is greater than, less than or equal to 8 percent. I really should have come to class more often. ABC Inc. is expected to pay a dividend of D1 = $1.30 per share at the end of the year, and that dividend is expected to grow at a constant rate of 6.00% per year in the future. The company's beta is 1.15, the market risk premium is 6.50%, and the risk-free rate is 3.00%. What is the company's current stock price? 30.79 31.41 32.28 28.67 +++ 29.05

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