ASAP

9. Although debt financing is usually the chespest component of capital, it cannot be used in excess becauso A, interest rates may change. C. the financial risk of the firm may increase and thus drive up the cost of all sources of financing D. underwriting costs may change. B. the firm's stock price will increase and raise the cost of equity financing. 10. Which of the following statements about the "payback method" is true? A. The payback method considers cash flows after the payback has been reached. B. The payhack method does not consider the time value of money C. The payback method uses discounted cash-flow techniques. D. The payback method generally leads to the same decision as other investment selection methods. 11. What is the order of the methods for ranking investment proposals from t reliable/intuitive methods? A. NPV> IRR> payback. B. IRR> NPV > payback C. payback IRR> NPV D. All three methods are equally reliable/intuitive. 12. Assuming that a firm has no capital rationing constraint and that a firm's investment alternatives are not mutually exclusive, the firm should accept all investment proposals A. for which it can obtain financing. B. that have a positive net present value C. that have positive cash flows. D. that provide returns greater than the after-tax cost of debt. 13. The measure of risk is best described as A. potential loss. B. the variability of outcomes around some expected value. C. the probability of expected values D. the potential expected loss. 14. The concept of being risk-averse means A. investors don't want to take on any risk. B. investors would usually prefer investments with high standard deviations and a greater opportunity for gain. C. that the greater the risk, the lower the expected return must be. D. that for a given situation, investors would prefer relative certainty to uncertainty, and the greater the risk, the higher the expected return must be. 15. If one project has a higher standard deviation than another, A. it may have a lower risk. B. it may have a lower expected value. C. it has fewer possible outcomes. D. it may be riskier, but this can only be determined by the coefficient of variation