I have 32 Finance MCQ questions that need to be completed.Only tutors with 3.5 and above rating should attempt to answer these questions.These MCQ questions are very important so u have to be 95% correct in answering them,its not difficult.

Tip will be provided if all answers are correct.

Time to complete: 2 hour

1. Which of the following is true? (Points : 3.5) The corporation model can be used to value divisions and firms that do not pay dividends. The discounted dividend model can be used to value divisions and firms that do not pay dividends. For the discounted dividend model, a firm's weighted average cost of capital is used as the discount rate. For the corporate valuation model, a firm's cost of equity is used as the discount rate. Question 2.2. Which of the following is false? (Points : 3.5) For the constant growth model to hold, a firm's cost of equity needs to be smaller than its constant dividend growth rate (i.e., rs g). From the constant growth model, if the constant dividend growth rate is equal to zero, a firm's share price is equal to the constant dividend divided by the cost of equity (i.e., g=0). If a company's constant dividend growth rate is negative, the formula for the constant growth model cannot be applied. Question 3.3. From the discussion of a firm's capital budgeting problem in chapter 11, which of the following is false? (Points : 3.5) The net present value method (NPV) assumes that cash flows are reinvested at the weighted average cost of capital (WACC). The internal rate of return method (IRR) assumes that cash flows are reinvested at the internal rate of return. The modified internal rate of return method (MIRR) assumes that cash flows are reinvested at the weighted average cost of cpaital. For mutually exclusive projects, if there is a conflict between NPV and IRR, the project with the highest IRR is chosen. The IRR is independent of a firm's weighted average cost of capital. Question 4.4. Which of the following is true? (Points : 3.5) As a firm's dividend payout ratio increases, the firm's WACC decreases. The WACC only represents the "hurdle rate" for a typical project with average risk. Therefore, the project's WACC should be adjusted to reflect the project's risk. Firms with riskier projects generally have a lower WACC. Holding all else constant, an increase in the target debt ratio tends to lower the WACC. Question 5.5. Which of the following is false? (Points : 3.5) If interest rates rise, the price of the bond will rise and its YTM (yield to maturity) will fall. Short-term bond prices are less sensitive than long-term bond prices to interest rate changes. Companies are not likely to call bonds unless interest rates have declined significantly. Thus, the call provision is valuable to firms but detrimental to long term investors. On balance, bonds that have a sinking fund are regarded as being safer than those without such a provision. Question 6.6. Which of the following is not true? (Points : 3.5) According to SML (security market line), the risk premium on a high-beta stock would increase more than that on a low-beta stock. If beta