Question 1 Given two mutually exclusive projects and a zero cost of capital, the payback 2 points method and NPV method of selecting investments will always lead to the same decision on which project to undertake. Your response: Question 2 For a project with normal cash flows, if the IRR is greater than its cost of capital, 2 points then the MIRR will be less than the IRR. Your response: Question 3 For a company with a positive dividend growth rate, the cost of common equity 2 points raised by issuing new common stock (12) equals the cost of common equity from retaining eamings (rs), divided by one minus the percentage flotation cost required to sell the new stock, (1-F). Your response: Question 4 For a firm with a modest amount of debt, financial leverage typically affects both 2 points Net Income and EBIT, while operating leverage only affects EBIT. Your response: Question 5 Opportunity costs include the cash inflows that could be generated from assets the 2 points firm already owns if those assets are not used for the project being evaluated. Your response