b. the required rate of return is greater than the internal rate of return. c. capital rationing is not imposed. d. the internal rate of return is positive.
48. When selecting the best project from a group of mutually exclusive projects you should choose the project with the highest: a. net present value. b. internal rate of return. c. accounting rate of return. d. payback.
49. The most expensive source of capital is: a. preferred stock. b. new common stock. c. debt. d. retained earnings.
50. When calculating the average cost of capital, which of the following has to be adjusted for taxes? a. Common stock b. Retained earnings c. Debt d. Preferred stock