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What is the decision rule for accepting or rejecting proposed projects when using net present value?
When going with the net present value decision rule any project with a net present value greater than or equal to zero would be acceptable. If any project with a negative net present value would be discarded.
Q. Example on Walters dividend model? Example: - The following information is obtainable in respect of a firm: Capitalisation Rate (Ke) = 10% Earning
It is a long-term call option to purchase common stock at a specified price.
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