Question: Preferred stock is often called a hybrid security because preferred dividend payment would depend on the firm's performance while default on preferred dividend payment would

Preferred stock is often called a hybrid security because preferred dividend payment would depend on the firm's performance while default on preferred dividend payment would not lead to bankruptcy.

True or False?

2. Under certain conditions, a project may have more than one IRR. One such condition is when, in addition to the initial investments at time = 0, a negative cash flow occurs at the end of the project's life.

True or False?

3. Projects requiring greater investments or that have greater risk should be given detailed analysis in the capital budgeting process.

True or False?

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