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Question 1 (4 points) All interest rates include an estimate of: O MARR Inflation OWACC O Equity contingencies O Both B and D Question 2

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Question 1 (4 points) All interest rates include an estimate of: O MARR Inflation OWACC O Equity contingencies O Both B and D Question 2 (4 points) Which of the following shows the correct relationship between ROR, WACC, and MARR? OROR = > WACC > MARR OROR = WACC MARR > WACC Question 3 (4 points) A company sells 20.000 shares of its company-owned stock to raise cash to buy a new piece of machinery. This is an example of: O Equity financing O Stock financing O Debt financing O Market-based financing Question 4 (4 points) Which statement(s) best describe the difference between simple and compound interest? O Simple interest rates are calculated using the principal only ()Compound interest rates are calculated on the principal plus the interest accumulated from previous periods ()Compound interest rates account for economic equivalence, but simple rates do not O Only A and B are correct O All of the above are correct

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