1. (TRUE or FALSE) Whenever the internal rate of return is greater than or equal to the required rate of return, the hurdle rate, the project is rejected.
2. (TRUE or FALSE) The firm using the hedging instruments such as a forward, futures, or swap contract insulates itself from the foreign exchange risk.
3. (TRUE or FALSE) To calculate the cost of new common stock, we must adjust the Dividend Growth Model equation for floatation costs of the new common shares.