help with the following questions:
13. 14. Which of the following statements is TRUE regarding protable and unprotable growth? A. If a rm wants to increase its share price, it must cut its dividend and invest more. B. If the rm retains more earnings, it can pay more dividends. C. When the return on new investment is lower than cost of equity capital, the optimal strategy is to pay out all earnings to shareholders. D. Cutting the rm's dividend to increase investment will raise the stock price if, and only if, the return on new investments is equal to cost of equity capital. Which of the following statements is FALSE? A. The total payout model allows us to ignore the rm's choice between dividends and share repurchases. B. By repurchasing shares, the rm increases its share count, which decreases its earnings and dividends on a per-share basis. C. The total payout model discounts the total payouts that the rm makes to shareholders, which is the total amount spent on both dividends and share repurchases. D. None of the above 15. 16. You receive an offer to produce a documentary for a company. You will rst receive a $50,000 upfront payment if you take the offer. Then you will spend the next three years working on the project, and estimate the time you spend on the project will cause you to give up income from other jobs amounting to $40,000 per year. In the fourth year when the project is done, you will receive another payment of $80,000. Can we use the IRR rule to evaluate this offer? A. Yes. IRR rule will lead you to the correct decision. B. No. Because the NPV curve is upward sloping. C. No. Because there are multiple IRRs for this project D. No. Because there is no IRR for this project. The effective annual rate (EAR) for a loan with a stated APR of 8% compounded monthly is closest to: A. 7.72% B. 8.00% C. 8.30% D. 8.66%