Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

Which of the following statements is most correct? Group of answer choices A. All else equal, a projects IRR decreases as the cost of capital

Which of the following statements is most correct?

Group of answer choices

A. All else equal, a projects IRR decreases as the cost of capital declines.

B. All else equal, a projects NPV is affected by changes in the cost of capital.

C. If a project has normal (conventional) cash flows, the project might have multiple IRRs

D. All else equal, a projects NPV is unaffected by changes in the cost of capital.

UoA Ltd just reported earnings per share (EPS) of $4.5. The share has a price earnings ratio of 50. Analysts expect that one year from now the company will still have an EPS of $4.5, and it will pay its first dividend of $2 per share. The share has a required return of 10%. What price earnings ratio must the share have one year from now so that investors realise their expected return?

Group of answer choices

A. 225

B. 245.5

C. 49.9

D. 54.56

Which of the following statements is most correct?

Group of answer choices

A. If a market is weak-form efficient, this means that you cannot expect to beat the market by using technical analysis that relies on the charting of past prices.

B. If a market is weak-form efficient, this means that you can expect to beat the market by using technical analysis that relies on the charting of past prices.

C. If a market is weak-form efficient, this means that prices rapidly reflect all available public information.

D. If a market is strong-form efficient, this means that all stocks should have the same expected return.

Short term bonds tend to have lower yields than that of long term bonds because:

Group of answer choices

A. short term bonds are more exposed to liquidity risk than long term bonds

B. long term bonds are more price sensitive than short term bonds

C. long term bonds are less price sensitive than short term bonds

D. holders of long term bonds benefit most from a rise of interest rates

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Tools for business decision making

Authors: kimmel, weygandt, kieso

4th Edition

978-0470095461

Students also viewed these Accounting questions