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E. A principal dissimilarity between bonds and stocks is the lack of a contractual agreement to pay dividends to stockholders, whereas bondholders are guaranteed their interest payment.
E. Scholars almost universally support technical analysis because it uses detailed statistical analysis to make predictions.
E. A stock's intrinsic value is based on assumptions about future cash flows made from technical analysis of the firm and the industry.
E. The future cash flows of a stand-alone project are as follows: 1 Year 0 4 Cash flow ($220,000) $80,000 $95,000 $60,000 $60,000 If the cost of capital is 16%, this project will contribute to shareholder wealth.
E. The decision rules for IRR are: Stand-alone: IRR >k reject the project IRR IRR, choose project A over project B IRRA
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