Which of the Following Statements Is CORRECT

question 81

Multiple Choice

Which of the following statements is CORRECT?

• A) If two projects are mutually exclusive, then they are likely to have multiple IRRs.
• B) If a project is independent, then it cannot have multiple IRRs.
• C) Multiple IRRs can occur only if the signs of the cash flows change more than once.
• D) If a project has two IRRs, then the smaller one is the one that is most relevant, and it should be accepted and relied upon.
• E) For a project to have more than one IRR, then both IRRs must be greater than the cost of capital.

Understand the use of stock options as compensation and their impact on aligning employees' interests with those of owners.

Understand the regulatory framework and accounting standards related to stock options and share-based payment.

Describe and calculate basic and diluted earnings per share, including the impact of complex capital structures.

Comprehend the implications of treasury stock transactions on financial statements.

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Definitions:

Tort

A civil wrong or breach of duty to another person, recognized by law as grounds for a lawsuit, resulting in an injury or harm that warrants compensation.

Intentional Tort

A wrongful act done on purpose that causes harm to another, including acts such as assault, battery, and defamation, as distinguished from negligence.

False Imprisonment

The intentional confinement or restraint of a person against his or her will.

Tort Claim

A legal claim arising from an act or omission that causes injury or harm to another, allowing the injured party to seek compensation.