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22. The interest rate applicable to new long-term debt financing that a firm may obtain to fund a capital invested project is the A embedded
22. The interest rate applicable to new long-term debt financing that a firm may obtain to fund a capital invested project is the A embedded rate. B historical rate. C. marginal rate. D. none of the above 23. Corporations can raise common equity funding A directly, by issuing new shares of common stock. B. indirectly, by re-investing earnings that are not paid out as dividends. C. by obtaining a long-term bank loan. D A and B and C E A and B 24. When a corporation issues new common stock shares A. the firm must pay flotation costs (F) to the underwriter or investment banker B. this may send a negative signal to the capital markets and cause the firm's stock price per share to decline in the market. Cthe firm's marginal income tax rate typically increases D. A and B E A and B and C 25. If possible, it is recommended that weights be used for the portions or percentages of the firm's assets that will be funded with the various types of financing A target Bhistorical C current market value D none of the above
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