When faced with capital rationing a company should choose

		the combination of projects with the highest NPV
		the projects with the highest IRRs
		the lowest ranked projects indicated by the Profitability Index
		the projects ranked highest by NPV

he cash flow which is associated with the beginning of a project is the

		book value
		net cash benefit
		initial investment
		change in depreciation

The procedure most companies use to account for differences in the risks of capital budgeting projects is the

		payback period
		net present value profile
		profitability
		risk adjusted discount ratio

The number of shares of common stock received when turning in 1 share of preferred stock is the

		conversion ratio
		participation feature
		preference feature
		cumulative feature

Johncar Corporation's expected dividend for next year is $7.70. It is expected to grow at a 3.2% rate in the future. If you require a 14% rate of return on similar risk investments, what is the value of a share of this common stock?

		$.71
		$55.00
		$71.30
		$73.58