14.

United Network declared a $0.50 per share dividend on Thursday, April 14. The dividend will be paid on Monday, September 5 to shareholders of record on Thursday, June 16. Which one of the following is the ex-dividend date?

Tuesday, June 14

Tuesday, April 12

Friday, April 15

Monday, June 13

Friday, April 27

15.

Which of the following statements related to the internal rate of return (IRR) is/are correct? I. The IRR does not always yield the same accept and reject decisions as the net present value method given mutually exclusive projects. II. An investment project with an IRR higher than net income should be accepted. III. The IRR is equal to the required return when the net present value is equal to zero. IV. The AAR is a better method of analysis than IRR from the financial point of view.

I, II, and III only

I and III only

I, III and IV only

I, II, III and IV

III and IV only

16. Which of the following is the correct definition for depreciation tax shield?

amount by which the aftertax depreciation expense lowers net income.

amount of tax that is saved when an asset is purchased.

amount of tax that is saved because of the depreciation expense.

amount of tax that is due when an asset is sold.

tax that is avoided when an asset is sold as salvage.