Internally generated equity to issuing new shares of common

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1. Valuate the following statement: Once the Social Security Trust fund is exhausted, beneficiaries will not receive social security checks.

2. Why financial analysts use cash flows prediction instead of accounting earnings prediction in estimating the NPV of a project?

3. Why are firms likely to prefer INTERNALLY generated equity to issuing new shares of common? Identify and briefly explain two reasons.

Reference no: EM132039620

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