An Internal Rate of Return Greater Than the Cost of Capital

question 44

True/False

An internal rate of return greater than the cost of capital, guarantees that the firm earns at least its required return. Such an outcome should enhance the market value of the firm and therefore the wealth of its owners.

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Definitions:

Effects

Consequences or outcomes that result from a specific cause or action.

Self-Esteem

A person's overall subjective sense of personal worth or value.

African American

A racial or ethnic group in the United States with ancestral ties to Africa.

North American

Relating to or characteristic of the continent that includes Canada, the United States, Mexico, and sometimes Greenland and various Caribbean islands.