(A) borrow money
(B) lend money
(C) both A and B
(D) none of these

(A) Rate of Return > Opportunity Cost
(B) Rate of Return < Opportunity Cost
(C) Rate of Return = Opportunity Cost
(D) A, B and C are irrelevant

(A) NPV
(B) opportunity cost
(C) risk premium
(D) rate of return

(A) 0
(B) 1
(C) positive
(D) negative

(A) cash inflow – cash outflow
(B) cash outflow – cash inflow
(C) PV of cash inflow – PV of cash outflow
(D) PV of cash outflow – PV of cash inflow

(A) perpetuity
(B) dividend
(C) liquidity
(D) annuity

(A) risk premium
(B) risk free rate
(C) option value
(D) arbitrage

(A) to maximize the profit of the shareholders
(B) to maximize the value of the corporation
(C) both A and B
(D) to take care of the interests of the management

(A) Repurchases are more flexible
(B) Repurchases are tax-advantaged
(C) both A and B
(D) none of these

(A) paying cash dividends
(B) stock repurchase
(C) both A and B
(D) none of these