Consider a project with an initial outflow at time $0$ and positive cash flows in all subsequent

years. As the discount rate is increased the

a$.$ IRR remains constant while the NPV increases.

b$.$ IRR decreases while the NPV remains constant.

c$.$ IRR increases while the NPV remains constant.

d$.$ IRR remains constant while the NPV decreases.

e$.$ IRR decreases while the NPV decreases.

Firm A and Firm B have total debt to asset ratios of $40\%$ and $30\%,$ respectively, and return on

total assets of $12\%$ and $15\%,$ respectively. Which firm has the greater return on equity?

a$.$ Firm A

b$.$ Firm B

c$.$ They are the same.

d$.$ Insufficient information to answer.

The Acme Widget Company has a ratio of long$-$term debt$-$to$-$total assets of $\mathrm{.}40$ and a current

ratio of $1\mathrm{.}30.$ Current liabilities are $$900,$ sales are $$5,320,$ net profit margin is $9\mathrm{.}4\%,$ and ROE is

$18\mathrm{.}2\%.$ What is the amount of the firm's net fixed assets?

Assume that the ROA for $xYZ$ Industries is $8\mathrm{.}56\%,$ and its debt ratio is $67\mathrm{.}5\%.$ What is XYZ$\text{'}$s ROE?

Consider the following financial data for the Kellogg Company $($in $$100,000\text{'}$s$)$:

What is Kellogg's Degree of Financial Leverage?

At a rate of $6\mathrm{.}25\%,$ what is the present value of the following cash flow stream?

Consider the following projects, all of which have the same riskiness $($all figures in $$1,000$ s$)$:

Which one has the highest IRR?