Compared to the valuations of debt and preferred stock

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Reference no: EM132025527

1."Compared to the valuations of debt and preferred stock, the valuation of common stock suffers most from information asymmetry problem due to mostly the uncertainty in the stock's beta."

True

False

2. "The IRR method assumes that future cash inflows will be reinvested and earn a rate of return equal to the project's WACC." True or false?

a. True

b. False

Reference no: EM132025527

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