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Ith Wisen if the above ris collect: If the expected rate of return on a stock exceeds the required rate, The stock is experiencing supemormal

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Ith Wisen if the above ris collect: If the expected rate of return on a stock exceeds the required rate, The stock is experiencing supemormal growth The stock should be sold The company is probably not trying to maximize price per share. The stock is a good buy Dividends are not being declared Which of the foliowing slaternents is colrect? The NPV mothod assumes that cash fiows will be reinvested at the roquited rate of retum while the IRR mothod assumes reirvestment at the ifar The key mothod assumes that cash faws will be reinvested at the risk-free rate while the sRR method assumes reinvestment at the lRR. ITe fer method assumes that cash fows will be reinvested at the requeed rale of return while the IRR mothod assumes reimvestment at the risk-free rate The Ner thethod does not consided the intation premeurn The ifor method does not consider all televant cash flows, and paiticularfy cash flows beyond the poyback period

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