Finance

1) if you believe the price of a stock is going to go lower you will purchase a call

- True or False

2) the IRR is the rate that

a equals zero

b makes the npv zero

c would make the project acceptable

d none of the above are correct.

3) the MIRR, when the NPV is positive

a will be greater than the IRR

b more information is needed

c will be less than the IRR and greater than the v..

d will be less than the WACC

4) The par value of a stock has no relation to the market price of that stock

True or False

5) A negative aspect of the IRR is

a it assumes all cash flows are reinvested at the IRR to the end of the project.

B when there is more than on change in signs (CF - + + - +) multiple IRR will

C both a and b are correct

D neither a or b are correct

6) If the NPV of a project is positive then the project is acceptable and will definitely be completed

True or False

7) If two projects are mutually exclusive and acceptable, then

a both may be completed

b neither will be completed

c only one of the projects will be completed

d these projects have nothing to with production