23. The approximate BEFORE TAX cost of debt for a 15-year 10% coupon interest rate, $1,000 par value bond selling on the market for $960 & then paying out $10 for flotation costs is a. 10% b. 15.4% c. 12% d. 10.6% 24. The net proceeds used in calculating the cost of long-term debt are funds actually received after paying for flotation costs a. TRUE b. FALSE 25. The cost of retained earnings for Sartell Golfing Association would be 16.64% if the firm just paid a $4.00 dividend, the stock price is currently $50.00, dividends are expected to grow at 8% indefinitely & the flotation costs are $5 per share. a. TRUE b. FALSE 22. A firm is evaluating the riskiness of two capital budgeting projects. The following table summarizes the NPV & associated (NPV) probabilities for various outcomes of the two projects Probability 0.25 (Optimistic) 0.50 (Most likely) 0.25 (Pessimistic) Net Present Values Project A Project B -$5,000 $0 $4,000 $2,000 $10,000 $8,000 Using the above information, the projects can best be characterized relative to one another by the statement a. Project A is riskier than Project B b. Project B is riskier than Project A c. Since Project A has a higher expected NVP, it should be chosen d. Since Project B has a higher standard deviation, it is riskier & should not be chosen