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1. The target capital structure is considered to be optimum because it:

a. maximizes common stock prices b. maximizes the weighted average cost c. minimized debt d. minimizes after-tax cost of debt Answer?

2. Investors price securities so that their expected return is equal to:

a. ten percent. b. their required rate of return. c. Treasury bond yields. d. zero.

3. A graph of the firm’s investment opportunities ranked in order of the projects’:

a. discounted payback b. internal rate of return c. net present value d. payback

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M93038711

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