Average book value is referred to as the project average

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Reference no: EM132033916

1. A project's average net income divided by its average book value is referred to as the project's average:

A. net present value

B. internal rate of return

C. profitability index

D. accounting rate of return

2. Using debt and preferred stock in the capital structure of a firm will _____.

decrease business risk

increase the book value of common stock

increase the tax payable by the firm.

increase financial risk

decrease operating leverage

Reference no: EM132033916

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