Answer all question correct

1. Interest Rates are sometimes referred to as: Yield O Future Value Compounding rate None of these 2. The Dividend Discount Model is one of the best valuation tools for analyzing a stock because: It is not a good tool since it is difficult to find the dividend growth rates It is the most popular method to value stocks of any company It is not one of the best valuation tools since not all stocks pay dividends and few consistently grow their dividends. is used to calculate Net Present Value 3. In capital budgeting and project analysis, the O Cash Flows Earnings Per Share Return on Investment All of these can be used to calculate Net Present Value 4. Danny invested $100,000 of his life savings to open a bar on the South Beach strip in Miami. Being in the business for several years, Danny did a thorough analysis and forecasted profits of the business that resulted in an internal rate of return of 16% over the next five years. Danny researched alternative opportunities and found that he could invest $100,000 in a biotechnology company that was doing research to cure the Coronavirus. Its stock was trading at $1 per share, but rumors on social media indicated that the stock could double or even triple in 5 years. Of the choices below, what is Danny's best option? O Go with the bar on South Beach Go with the biotechnology company. If it doubles his investment will be worth 200k. Do nothing. Keep your money in your checking account at the bank. 5. The Internal Rate of Return (IRR) and the Return on Investment (ROI) formulas can be used interchangeably when calculating growth rates over 5 years or more. O True O False