QUESTION 18 Which of the following is NOT true for standalone risk? It is equal to market risk plus firm specific risk All of these choices are correct Investors can eliminate about half the risk of owning a single stock by forming diversified portfolios None of these choices is correct. It is defined as the part of the security risk that cannot be eliminated by diversification QUESTION 19 MIRR is considered a superior capital budgeting method when compared to IRR. Which of the following is NOT one of the reasons to support this claim Managers like rate of return comparisons, and MIRR is better for this than O MIRR assumes that the cash flows from each project are reinvested at the projects own IRR. O MIRR correctly assumes reinvestment at the cost of capital (WACC) MIRR avoids the problen of multiple IRS All of these choices are NOT reasons to support this claim QUESTION 20 Lee Manufacturing's value of operations is equal to 5900 million after a recapitalization (the firm had no debt before the recap). Lee raised $300 million in new debt and used this to buy back stock Lee had no short-term investments before or after the recap. After the recap, wd 1/2. The firm had 30 million shares before the recap. What is the stock price per share after the recap)? 520 560 527 O 517 530