The MIRR fixes a problem with the IRR formula.

Group of answer choices

True

False

Which of the following statements best describes what a "Preemptive right" means:

Group of answer choices

management can preempt the right of shareholders to receive dividends if earnings are insufficient

common shareholders can "preempt" preferred shareholders for dividends

existing shareholders are guaranteed an opportunity to retain their proportional share of ownership of the firm

existing shareholders can prevent management from issuing addition common stock

Which of the following is CORRECT?

Group of answer choices

Preffered Stock is valued by using a version of the NPV (NPV = D/rp) that is the same as the present value of a perpituity

Preferred Stock is preferred because the returns are always fixed.

Preferred Stock is like fixed income because it represents a creditor stake in the firm.

Preferred Stock is only held be the founders of the firm.