What is the firm expected rate of return

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1. There are several different methods making capital budgeting decisions. However, the single best method is:

a. Internal rate of return (IRR).

b. Netpresentvalue(NPV).

c. Discounted payback.

d. Modified internal rate of return (MIRR).

2. Dothan Inc.'s stock has a 25% chance of producing a 17% return, a 50% chance of producing a 12% return, and a 25% chance of producing a -18% return.

What is the firm's expected rate of return?

a. 5.81%

b. 5.75%

c. 6.27%

d. 4.43%

e. 4.72%

Reference no: EM131904229

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