11

the following are true or false

6) generally, market value are less desirable than book value for weighing a firm's funding components.

13) yield-to- maturity and Rd are not synonymous

18) other things equal, the retaer the WACC, the greater the NPV will be.

19) if 1000 shares of stock sell $20 per share and 50 bonds sell for $800 each, their combined market value <$50,000

20) If a firm's capital structure is 40% equity and 60% debt while equity costs 15% and debt costs 6%, the weighted average cost of capital >10%

8

11) probabilities range from -100% to 100%