TRUE AND FALSE

5)The internal rate of return is the rate of return expected by those who provide capital for the business (debt and equity); Is that last statement true or false?

6)There are two ways the WACC is typically used. Senior leaders use it to evaluate individual investments and investrors use it to assess the value of the firm; Is that last statement true or false?

7)An investor/speculator has bought protection on 1 million at 343 basis points with CDS on Company A. She expects that price to reach 500 basis points soon. Therefore, she is pessimistic about the credit risk of company A.

8)The acquisition of a firm can be evaluated with the same tools (Net Present Value) that are used in conventional project valuation. Is this last statement true or false?