Treasury bills currently have a return of 3% and the market risk premium is 8%. If a firm has a beta of 0.8 and a tax rate of 40%, its required rate of return on its equity is greater than but less than or equal to Choose the range that includes the correct answer. O 0%; 9% O9%: 10% 10%; 11% O 11%; 12% O 12%; infinity Which of the following capital budgeting methods always consider cash flows near the end of a project's life? 1. Internal rate of return II. Net present value III. Payback period O I only O ll only Olll only I and II only O 1, 11, and III Assuming conventional cash flows, which of the following is/are true? O A capital budgeting project with a positive IRR could have a negative NPV. O If NPV analysis ranks investment A above investment B, IRR analysis must also rank investment A above investment B. O Any capital budgeting project that payback period analysis finds acceptable will also be found acceptable through IRR analysis. O More than one of the above are correct. O None of the above are correct. True or False. Preferred stock is favored over common stock as a source of financing because of the tax break a company receives for its usage. True False