Using the firm's asset beta to evaluate projects, it will likely:

Group of answer choices

A.reject higher risk projects that have positive NPV.

B.accept higher risk projects that have negative NPV.

C.accept lower risk projects that have negative NPV.

D.accept lower risk projects that have positive NPV.

Which of the following statements is true?

Group of answer choices

A.Shareholder wealth increases by 10% after a 10% cash dividend.

B.Shareholder wealth decreases by 10% after a 10% cash dividend.

C.Shareholder wealth decreases by 10% after a 10% stock dividend.

D.All statements are false.

E.Shareholder wealth increases by 10% after a 10% stock dividend.

Which of the following statement is false?

Group of answer choices

A.Firms in financial distress should increase debts because of agency cost of equity.

B.Firms in financial distress should increase debts because of agency cost of debt.

C.Firms in financial distress will underinvest.

D.Firms in financial distress will accept negative NPV projects.

Which of the followings is true?

Group of answer choices

A.Firms view stock repurchases as investment because they believe their stocks are underpriced.

B.Stock repurchases provide a tax advantage over dividends.

C.Firms view dividends as a commitment and stock repurchases are more flexible.

D.All statements are true.

E.Managers prefer stock repurchases than dividends because of the stock options they own.