Like all tax-sheltered retirement accounts, an IRA is not an investment but rather a tax-sheltered account in which to make and hold investments

In comparing the internal rate of return and net present value methods of evaluation, ________

A) internal rate of return is theoretically superior, but financial managers prefer net present value B) net present value is theoretically superior, but financial managers prefer to use internal rate of return C) financial managers prefer net present value, because it is presented as a rate of return D) financial managers prefer net present value, because it measures benefits relative to the amount invested

A firm issues $225 million in straight bonds at an original issue discount of 2.0% and a coupon rate of 6%. The firm pays fees of 4% on the face value of the bonds. The net amount of funds that the debt issue will provide for the firm is ________

A) $200.925 million B) $211.5 million C) $222.075 million D) $232.65 million