QUESTION 8 Which of the following statements is most CORRECT? a. If a project has normal cash flows and adds value to a firm, then the MIRR must be greater than the IRR. b. If a project has normal cash flows and adds value to a firm, then the MIRR must be greater than the IRR. c. For normal projects, NPV increases as cost of capital (k) increases. d. NPV and discounted payback period methods measure profitability of projects and account for the time value of money, Oe. The MIRR method does not always choose the better of two mutually exclusive projects with different sizes. QUESTION 9 Which of the following statements is most TRUE? a. In general, as a firm begins to add debt to its capital structure, the firm's EPS will improve, and the riskiness of EPS will decrease b. The higher a firm's tax rate, the more attractive debt capital will be to that firm. oc Lower operating leverage stems from having higher fixed costs. The more debt a firm has in its capital structure, the lower that firm's financial leverage will be Od 9. The capital structure that maximizes the firm's earnings per share is also the capital structure that minimizes WACC