Which of the Following Are Tax Deductible Under U.
Which of the following are tax deductible under U.S. tax law?
A) interest payments to bondholders
B) preferred stock dividends
C) common stock dividends
D) all of the above
Which of the following best represents a screening decision?
A) determining which project has the highest net present value
B) determining if a project's internal rate of return exceeds the firm's cost of capital
C) determining which projects are mutually exclusive
D) determining which are the best projects
Sensitivity analysis is
A) an appropriate response to uncertainty in cash flow projections.
B) useful in measuring the variance of the Fisher rate.
C) typically conducted in the post investment audit.
D) useful to compare projects requiring vastly different levels of initial investment.
If management judges one project in a mutually inclusive set to be acceptable for investment,
A) all the other projects in the set are rejected.
B) only one other project in the set can be accepted.
C) all other projects in the set are also accepted.
D) only one project in the set will be rejected.