Author Question: The IRR method assumes the cash flows are reinvested at the internal rate of return rather than the ... (Read 132 times)

Mr.Thesaxman · **on:** Jul 10, 2018

The IRR method assumes the cash flows are reinvested at the internal rate of return rather than the required rate of return.

Indicate whether the statement is true or false

Question 2

From a corporation's point of view, a disadvantage of issuing preferred stock is ________.

A) that it increases financial leverage
B) that it has to give fixed payments as well as voting rights to the holders
C) its excellent merger security
D) that the dividends are not tax-deductible