Of the following statements it most correct? The PV of an ordinary annuity will be larger than the PV of an annuity due, other things held constant. The effective annual rate will always be greater than the nominal rate except in situations where the periodic rate is equal to the nominal rate. If you were borrowing money from a bank, and the nominal interest rate was 10 present, you would be better off if the bank used daily rather than quarterly compounding. If you were borrowing money from a bank, and the nominal interest rate was 10 present, daily compounding, you would be better off if the bank used 365-day year rather than a 360-day year $100 placed in a bank account, which pays 6 present, will double faster if the bank pays interest annually rather than daily. Which of the following assumptions would cause the constant growth stock valuation model to be invalid? The constant growth model is given below: P_0 = D_0(1 + g_c)/h_c - g_c The growth rate is negative. The growth rate is zero. The growth rate is less than the required rate of return. The required rate of return is above 30 present. None of the above assumptions would invalidate the model. Which of the following statement regarding NPV is false? You need an interest rate to calculate an NPV. Cash flows can be either positive or negative. CF0 must be negative because initial investment is typically a cash outflow. NFV can be computed once NPV is computed, and we know the interest rate. They are all generally true