24. A firm's weighted average cost of capital should be computed using the book value of each source of financing. True False QUESTION 25 25. Net Working Capital (NWC) is a. Current Assets + Current Liabilities b. Current Assets - Current Liabilities c. Current Assets * Current Liabilities d. Current Assets - Current Liabilities QUESTION 26 26. Why is debt financing said to include a tax shield for the company? A) Taxes are reduced by the amount of the debt. B) Taxes are increased by the amount of the interest. C) Taxable income is reduced by the amount of the debt. D) Taxable income is reduced by the amount of the interest. QUESTION 27 27. Shares of stock that have been issued and subsequently repurchased by the issuer are known as outstanding shares. True False 28. Assume a corporation uses cumulative voting and there are two directors up for election. What is the maximum number of votes a shareholder who owns 100 shares can cast for either candidate? A) 20 D) 200 QUESTION 29 29. A company is about to issue 1,000 new shares of stock at a market price of $33 per share. If the par value per share is $4, the increase in capital surplus from this stock issue will be: A) $33.000. B) $4,000. C) $29.000. D) $32,000 QUESTION 30 30. If a corporation has more shares issued than outstanding, then: A) the Board of Directors is holding shares. B) there are preferred shares outstanding. C) the corporation has treasury stock. D) unexercised stock warrants exist