1.2.3.4.Which ones of the followings are FALSE about debt and equity?

a. Debt provides an ownership interest.

b. Common stockholders have voting rights.

c. Interest is not considered a cost of doing business and is not tax deductible.

d. Creditors have legal recourse if interest or principal payments are missed.

e. A company can go bankrupt if it has too much equity.

5.the __________ the required return and the __________ the dividend growth, the higher the stock price.

A) lower, higher

B) higher, lower

C) higher, higher

D) lower, lower

FIN220 Co. is considering a three-year project that requires an initial fixed asset investment of 18 million Baht. The asset will be depreciated straight-line to zero over its three-year tax life, after which time it will have a market value of 2.5 million Baht. The project is estimated to generate 22.5 million Baht in annual sales, with costs of 12.5 million Baht. The project also requires an initial investment in net working capital of 1.8 million Baht. The tax rate is 34 percent and the required return on the project is 12 percent. What is the project's NPV? the default The higher the credit rating, the the bond, the probability, and the the expected return. riskier, higher, higher safer, lower, lower riskier, higher, lower safer, lower, higher 10 point: Saved FIN220 Co. has just paid a dividend of 1.80 Baht per share on its stock. The dividends are expected to grow at a constant rate of 4 percent per year indefinitely. If you require a return of 7 percent, how much would you be willing to pay for the stock? 26.74 25.71 60.00 62.40