The net present value: a. is unaffected by the timing of an investment's cash flows. b. ignores cash flows that are distant in the future. c. decreases as the required rate of return increases. d. method of analysis cannot be applied to mutually exclusive projects. e. is equal to the initial investment when the internal rate of return is equal to the required return. If an investment is producing a return that is equal to the required return, the investment's net present value will be: a. equal to the project's initial investment. b. greater than the project's initial investment. c. positive. d. zero. e. negative. Which one of the following statements is correct concerning common stock dividends? a. A firm cannot go bankrupt for not declaring dividends. b. Dividends are considered a liability of the firm. c. Dividends are treated as a tax-deductible expense of the issuing firm. d. Dividends are paid out of before-tax profits. e. Dividends are paid to bondholders. Wentworth's Five and Dime Store has a cost of equity of 10.7 percent. The company has an aftertax cost of debt of 4.3 percent, and the tax rate is 23 percent. If the company's debt-equity ratio is .67, what is the weighted average cost of capital? a. 6.80% b. 8.13% c. 6.24%