For 7-10 use graph provided.

11-16 need to answe just based on statement.

70 F ): The "crossover" rate equates the IRR's of the two Projects 8( F): To the left of Point S Project A is preferred to Project B based on its NPV. "(T F ): The IRR method assumes project cash flows are reinvested at the Project IRR. 10 F): According to the IRR criteria Project B is always preferred to Project A 11 (TB) A conglomerate merger is of questionable or "dubious" value unless synergies can be identified, because the firms are in unrelated businesses and shareholders can instead diversify their portfolios by directly buying shares in the two companies. 12(TF) A company intending to take over another company in Ontario can purchase up to 20% of the outstanding common shares in the open market without disclosing their intentions to anyone. Once 20% is reached, however, the Ontario Securities Commission must be notified. 13(T F ) In a hostile transaction, the Bidder can make a Tender offer directly to Target shareholders in the open market, bypassing management of the Target and the need for a formal takeover vote. 14(TF) In a share exchange merger, it is possible for the former target shareholders to end up in control of the combined company if the share exchange ratio is so low that they are given more than 50% ownership of the new combined company. 15(T F ) A company is considering a capital project that will cost $5 million. If economic conditions are good, then the NPV of the project will be S10 million but if economic conditions are bad, the NPV will be negative S6 million. The company should not proceed with the project because there is a chance of a loss of $6 million. 16(T F) A company with a debt to equity ratio of 0.25 has a debt to value ratio of 20%. Required: Circle the letter T or the letter F beside cach statement number to indicate wi believe each statement is True or False: statement number to indicate whether you Statements 1-10 refer to the graph below. NPV (S) -Crossover Rate = 9% 12 15 Discount Rate (k) (%) 70 F ): The "crossover" rate equates the IRR's of the two Projects Project A is preferred to Project B based on its NPV. 8(D F ): To the left of Point 9(T F ): The IRR method assumes project cash flows are reinvested at the Project IRR. 10 ( U F ): According to the IRR criteria, Project B is always preferred to Project A. 11(TB) A conglomerate merger is of questionable or "dubious" value unless synergies can be identified, because the firms are in unrelated businesses and shareholders can instead diversity their portfolios by directly buying shares in the two companies. 12(TF) A company intending to take over another company in Ontario can purchase up to 20% of the outstanding common shares in the open market without disclosing their intentions to anyone. Once 20% is reached, however, the Ontario Securities Commission must be notified. 13 (T F ) In a hostile transaction, the Bidder can make a Tender offer directly to Target shareholders in the open market, bypassing management of the Target and the need for a formal takeover vote. 14(TF ) In a share exchange merger, it is possible for the former target shareholders to end up in control of the combined company if the share exchange ratio is so low that they are given more than 50% ownership of the new combined company. 15(T F ) A company is considering a capital project that will cost $5 million. If economic conditions are good, then the NPV of the project will be $10 million but if economic conditions are bad, the NPV will be negative $6 million. The company should not proceed with the project because there is a chance of a loss of $6 million. 16(TF) A company with a debt to equity ratio of 0.25 has a debt to value ratio of 20%