Question
Which of the following is false? A) If the capital structure of the firm is going to be changed next year then you would use
Which of the following is false?
| A) If the capital structure of the firm is going to be changed next year then you would use the future capital structure weights instead of the current ones to calculate WACC for capital budgeting. |
| B) If the required rate of return for a project is 8% and the IRR of the project is 7.5% then we would reject this project under the IRR decision criteria. |
| C) For two mutually exclusive projects, if the required return is the same as the crossover point, then you would not care which project you took on. |
| D) If the current return for Tractor Supply Stock is 9%, and the expected return from the CAPM is 11%, then the current stock price is under-valued. |
| E) The EAR = APR when there is annual compounding |
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