1. The possibility that more than one discount rate can cause the net present value of an investment to equal zero is referred to as:
duplication.
the net present value profile.
multiple rates of return.
the AAR problem.
the dual dilemma.
2. A stock has paid dividends of $1.70, $1.85, $2.00, $2.20, and $2.50 over the past five years, respectively. What is the average capital gains yield?
8.86 percent
3.24 percent
9.45 percent
5.34 percent
10.14 percent