firm has: The interest tax shield has no value in the current tax year when a so taxable income IL debt-equity ratio of I III. zero debt TV. no leverage A. II, III, and IV only D. II and IV only B.1. III, and IV only C I and III only None of the above t is the benefit-cost ratio for an investment with the following cash flows at a 14.5 percent 4 What required return? Year Cash Elow 0 $(46,500) 1 12,200 2 38,400 S 11,300 B. 1.06 0.98 D. 0.94 E. 1.02 5. When investment returns are less than perfectly positively correlated, the resulting diversification effect means that: A. making an investment in two or three large stocks will eliminate all of the unsystematic risk. B. making an investment in three companies all within the same industry will greatly reduce the systematic risk. C spreading an investment across five diverse companies will not lower the total risk. D. spreading an investment across many diverse assets will eliminate all of the systematic risk. E spreading an investment across many diverse assets will eliminate some of the total risk