12. Sophisticated managers will consider multiple models, such as Net Present Value, Internal Rate of Return and Modified Internal Rate of Return methods for making capital budgeting decisions.

True

False

14. Mutually Exclusive projects are projects that compete with one another so that the acceptance of one eliminates from further consideration all other projects that serve a similar function.

True

False

18. A share of common stock has just paid a dividend of $2.30. If the expected long-run growth rate for this stock is 5 percent, and if equity investors require a 12 percent rate of return, what is the fair price of the stock?

a. 32.86

b. 33.12

c. 34.50

d. 35.35

e. 36.30