Assume all stock prices fairly reflect all of the available information on those stocks. Which one of the following terms best defines the stock market under these conditions?

Riskless market

Evenly distributed market

Zero volatility market

Blume's market

Efficient capital market

The change in variable costs that occurs when production is increased by one unit is referred to as the:

Marginal cost.

Average cost.

Total cost.

Scenario cost.

Net cost.

Forecasting risk is defined as the possibility that:

Some proposed projects will be rejected.

Some proposed projects will be temporarily delayed.

Incorrect decisions will be made due to erroneous cash flow projections.

Some projects will be mutually exclusive.

Tax rates could change over the life of a project.

The IRR that causes the net present value of the differences between two project's cash flows to equal zero is called the:

Required return.

Zero-sum rate.

Present value rate.

Break-even rate.

Crossover rate.

What are the distributions of either cash or stock to shareholders by a corporation called?

Coupon payments.

Retained earnings.

Dividends.

Capital payments.

Diluted profits.