A firm has two projects. Project A has an internal rate of return of 6%. Project B's internal rate of return is 11%. If the firm's discount rate is 9.57%,
A) both projects have a negative net present value.
B) only project A has a positive net present value.
C) only project B has a positive net present value.
D) both projects have a positive net present value.
C
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When Ferrari sells stock to the public in its IPO, it will do so through the New York Stock Exchange. People who buy the shares will
A) do so in the indirect finance market. B) own part of the company. C) be promised to be repaid their investment plus interest. D) All of the above are true.
If gold and the dollar are substitutes, a cut in the Japanese discount rate can be expected to
a. appreciate the dollar and decrease the price of gold. b. depreciate the dollar and increase the price of gold. c. depreciate the dollar and decrease the price of gold. d. appreciate the dollar and increase the price of gold.