Bond coupon payments and dividends from perferred stocks

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1. Which of the following comes closest to the net present value (NPV) of a project that produces an inflow today of $108 but requires the payment of a cash flow of $200 at the end of year 3 if the required rate of return is 10%?

A. 42.26

B. (42.26)

C. 64.56

D. (64.56)

2. Bond coupon payments and dividends from perferred stocks and common stocks can all enjoy tax-deductible feature.

A. True

B. False

Reference no: EM131056989

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