The MIRR Statistic Is Different from the IRR Statistic in That

question 93

Multiple Choice

The MIRR statistic is different from the IRR statistic in that _____________.

• A) The MIRR assumes that the cash inflows can be reinvested at the cost of capital
• B) The MIRR assumes that the cash inflows can be reinvested at the IRR
• C) The MIRR uses weighted-average dollars
• D) The MIRR uses input from the NPV whereas the IRR does not

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Definitions:

Annual Dividend

A yearly payment made by a corporation to its shareholders, usually derived from profits.

Total Return

Total return is the full return on an investment over a given period, including all dividends, interest, and capital gains, adjusted for any capital losses.

Annual Dividend

The total amount of dividends a company distributes to its shareholders over one year.

Dividend Growth Rate

Yearly percent growth rate in the dividends paid by a company.