Which of the following statements concerning the internal rate of return is false?
A) The internal rate of return for a capital budgeting project is the same for all firms regardless of their cost of capital.
B) A project is acceptable long as the project's internal rate of return is greater than the hurdle rate for the project.
C) The internal rate of return is dependent on the timing of the cash flows.
D) A project with a positive internal rate of return will always increase the value of the firm if the project is accepted.
E) You do not need to know the required rate of return to solve for the internal rate of return.
D
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Which of the following statements regarding amortization is true?
a. Amortization of the premium causes the premium on bonds payable account to increase. b. Amortization of the premium causes the amount of interest expense to increase. c. Cash interest payments on bonds equals interest expense on the income statement when there is amortization of bond premium. d. Amortization of premium continues over the life of the bond until the balance in the account is reduced to zero.
What is the last step in Kotter’s 8-Step Model of Planned Change?
a. build on the change b. refreeze c. refresh d. anchor the changes in the organizational culture
Sue Hank has just indicated that the extra benefits from getting an A in her personal finance course are not worth the extra effort she must give. Sue used marginal analysis in making her decision
Indicate whether the statement is true or false.
Quality measured with reference to price is captured by the notion of:
A) conformance to specifications. B) value. C) fitness for use. D) psychological impressions.