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 %