Q5. Assuming all of the projects have equal risk, Conover creates an investment opportunity set (IOS) by ranking the projects starting with the most favorable to the least favorable project as follows: A) ABCDE. B) DBACE. C) DBCAE.
Q6. Conover calculates new WACC beyond the retained earnings break-even point as: A) 15.30%. B) 18.00%. C) 14.36%.
Q7. Based on the investment opportunity schedule (IOS) and marginal cost of capital (MCC) schedule, which projects should be accepted? A) A, B, and D. B) A, B, C, and D. C) A and D.
Q8. Conover uses a technique involving random variables in a simulation to estimate the NPV of the projects. This technique is known as: A) bootstrapping. B) scenario analysis. C) Monte Carlo.
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发表于 2009-1-22 09:55
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