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In general, how is the increase in the value of the firm produced by a positive net present value project distributed between the firm’s creditors and shareholders?
a. The creditors receive their interest payments from the project and shareholders have the residual.
b. The increase in value is distributed proportionately between creditors and shareholders based on the relative proportions of their holdings in the firm.
c. The total positive net present value of the project accrues to shareholders.
d. The total positive net present value of the project accrues to creditors.
What is the price of a zero-coupon bond paying interest semi-annually that matures in 10 years? The bond has a total par value of $1 million and its current yield to maturity is 8%.
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What happens if a consumer purchases a product that does not live up to his expectations following an extensive consumer decision making process?
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the finance department of a large corporation has evaluated a possible capital project using the npv method the payback
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