Discuss the general principle in the valuation of a common stock.
Question 13 of 25
4.0 / 4.0 Points
The managers of a firm can maximize stockholder wealth by:
A. Taking all projects with positive NPVs
B. Taking all projects with NPVs greater than the cost of investment
C. Taking all projects with NPVs greater than present value of cash flow
D. All of the above
Question 14 of 25
4.0 / 4.0 Points
Florida Company( FC) and Minnesota Company( MC) are both service companies. Their historical return for the past three years are: FC:- 5 %, 15 %, 20 %; MC: 8 %, 8 %, 20 %. If FC and MC are combined in a portfolio with 50 % of the funds invested in each, calculate the expected return on the portfolio.
A. 12 %