Wrong investment decisions can occur if one relies on IRR instead of NPV when: a. projects are mutually exclusive b. projects are independent of one another c. a project has more than one NPV d. the first cash flow is negative and the remaining cash flows are positive e. the profitability index is greater than one Next Previous Your company has a preferred stock that has an annual dividend of $3.50. If the current price is $30, for purposes of computing the WACC, what is the cost of equity? a. 11.67% b. $30 c. 7.5% d. $8.57 e. 8.57% Next Previous