What is the decision criterion using the Net Present Value rule?
What will be an ideal response?
Answer: The decision criteria using the Net Present Value rule is to reject projects if their net present value (NPV) is less than zero.
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Except in states that have adopted the Uniform Probate Code, the ___ is the personal representative of the estate and is responsible for settling the estate.
a. administrator b. guardian ad litem c. executor d. conservator
Using the dividend valuation method, an analyst determines the value of Company A's stock to be
$10 and the value of Company B's stock to be $14. Based on this information, which of the following statements is most accurate? A) Company B's required rate of return is higher than Company A's required return. B) Other things being equal, if Company A and Company B have the same firm value, Company A may have more shares of stock outstanding than Company B. C) Company B must be riskier than Company A, and risk requires a reward. D) Other things being equal, if Company A and Company B have the same firm value, Company B must have more debt, thus leveraging its returns for the benefit of shareholders.