11. Only a firm's permanent financing requirement (and not the seasonal requirement) is financed with in the aggressive funding strategy. A. long-term debt B. T-bills C. retained eamings D. accounts payable 12. The cost of preferred stock is typically higher than the cost of long-term debt (bonds) because the cost of long-term debt (interest) is tax deductible. A. True B. False 13. Since the net proceeds from sale of new common stock will be less than the current market price, the cost of new issues will always be less than the cost of existing issues. A. True B. False 14. Independent projects are those whose cash flows are unrelated to one another; the acceptance of one does not eliminate the others from further consideration. A. True B. False