1. Which of the following is the single best criterion, due to the fact it provides a direct measure of value that the project adds to shareholder wealth?
net present value (NPV)
discounted payback
internal rate of return (IRR)
modified internal rate of return (MIRR)
2. Which of the following are true with regards to preferred stock?
Preferred stock is a hybrid between common stock and bonds.
Skipping the preferred dividend will lead to the company's bankruptcy.
Preferred stock has a par value.
Preferred stock has a fixed dividend that must be paid before dividends can be paid on the common stock.