These questions are complete question, I just want answer of them

Which of the following is true?

A. Since depreciation is not a real cash flow, it's irrelevant to capital budgeting decisions.

B. If the IRR of project A is higher than the IRR of project B, and A and B are mutually exclusive, then the manager should pick A.

C. The NPV rule does not apply if the firm faces financing constraints.

D. If the IRR rule agrees with the payback rule, then the manager doesn't need to consider NPV any more..

E. If NPV of the project is negative, then the manager should not undertake the project even when the firm is not financially constrained.

Which of the following does NOT exacerbate the cost of financial distress?

A. The firm sells durable products.

B. The firm is a growing firm with lots of investment opportunities.

C. The firm has lots of profitable patents.

D. The firm is small.

E. The firm has lots of different creditors.

Which of the following can alleviate the debt overhang problem?

A. Issue additional equity.

B. Issue junior debt.

C. Elicit payment from existing shareholders.

D. Renegotiate with existing debt holders and try to convert debt to equity.

E. None of the above.

9. Which of the following is true:

A. Even with taxes, capital structure is irrelevant when the manager evaluates the NPV of a project.

B. The capital structure of the comparable firm must be similar to the project if the manager wishes to

apply WACC.

C. The capital structure of the comparable firm must be similar to the project if the manager wishes to apply APV.

D. WACC does not take into account of the tax shield generated by the project.

E. WACC is higher than the rA in APV if tax is positive.

Which of the following is true?

A. If stock A and B both have higher volatility than stock C and D, then the equal-weighted portfolio of A and B must have higher volatility than the equal-weighted portfolio of C and D.

B. One can eventually eliminate all the risks in a portfolio if there is a large enough set of assets to diversify with.

C. If one can identify the stock with the highest expected return, then he/she should hold that stock instead of the tangent portfolio.

D. The fact that two stocks have the same volatility but different expected returns is a manifestation of market inefficiency.

E. If stock A has higher volatility than stock B, then it's possible that A has lower expected return than B if the CAPM holds.