In applying risk-adjusted discount rates to project selection, ...

[cartlidgeashley]

In applying risk-adjusted discount rates to project selection, projects falling above the SML would have a negative NPV and those falling below the SML would have a positive NPV.
 
  Indicate whether the statement is true or false

Question 2

Dividends received by a corporation on an investment in the common and preferred stock of another corporation, where ownership in the dividend paying corporation is less than 20, is subject to 70 percent exclusion for tax purposes.
 
  Indicate whether the statement is true or false

[vickyvicksss]

Answer to Question 1

FALSE

Answer to Question 2

TRUE