10.) Project selection ambiguity can arise if you rely on the internal rate of return...

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Finance

10.) Project selection ambiguity can arise if you rely on the internal rate of return (IRR) instead of the net present value (NPV) when _____.

A projects cash flows are normal.

There are multiple IRRs.

Projects are independent from each other.

All of the statements above are correct.

11.)

Generally, the corporate cash distribution policy defines: _____

The level of cash distributions to shareholders.

The form of the distribution (dividend vs. stock repurchase).

The stability of the cash distribution.

All of above.

12.)

MMs dividend irrelevance theory says that dividend policy does not affect a firms value because any shareholder can in theory constructs his or her own dividend policy. But the theory may not be true because it is based on unrealistic assumptions - no taxes and brokerage costs.

True

False

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