QUESTION 17 Which of the following is most CORRECT? O "Equity Value Added is the measurement of the difference between the market value of the firm's equity today and the amount of equity capital that has been supplied by investors. U . When we are expecting a recession, the Federal Reserve is more likely to increase short-term interest rates than to decrease them. . If you wanted a capital gain, you would want to buy bonds now if you thought the bond coupon rates were going to go up in the future. U D. The difference between EVA and Net Income is the cost of the firm's debt. OE. Deficits, whether federal or trade, tend to push interest rates higher. QUESTION 18 Dalton Bloodworth is analyzing the profitability of the following project. Help him by calculating the MIRR. The cost of capital is 11 percent. QUESTION 13 Which of the following is most CORRECT? OA. If a corporation's bonds are selling at a discount, then the YTC is probably the expected return for the investor. OP. A fixed-rate bond will sell at a premium when its coupon interest rate is equal to the going rate of interest, kd. O .Zero coupon bonds pay no annual interest and are issued at a premium to their par value. OU. If current interest rates are below the fixed coupon rate of a bond, that bond will sell at a premium. Ot. The price of an existing bond moves in the same direction as interest rates (i.e. if interest rates rise, bond prices also rise QUESTION 14 Show