QUESTION 20 5 points Save Answer The cash flows associated with common stock are more difficult to estimate than those related to bonds because stock has a residual claim against the company versus a contractual obligation for a bond. True False 5 points Save Answer QUESTION 21 According to the nonconstant growth model discussed in the textbook, the discount rate used to find the present value of the expected cash flows during the initial growth period is the same as the discount rate used to find the PVs of cash flows during the subsequent constant growth period. True False 5 points Save Aniwer QUESTION 22 Projects and are mutually exclusive and have normal cash flows Project Chas a higher NPV if the WACC is less than 12%, whereas Project D has a higher NPV if the WACC exceeds 12% Which of the following statements is CORRECT? Ca. The crossover rate between the two projects is below 12% b. Project probably has a faster payback c. Project Dis probably larger in scale than Project C. d. Project D probably has a higher IRR. e Project probably has a higher IRR