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30. Poor capital structure decisions can result in a high cost of capital, thereby making some unacceptable investments acceptable a. TRUE b. FALSE 31. Weighting

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30. Poor capital structure decisions can result in a high cost of capital, thereby making some unacceptable investments acceptable a. TRUE b. FALSE 31. Weighting schemes for calculating the weighted average cost of capital (WACC) include all of the following EXCEPT a. Book value weights b. Optimal value weights c. Market value weights d. Target weights 32. Sartell Golfing Inc. is considering issuing preferred stock to raise capital for a new golf ball logo machine. The preferred stock would have a par value of $75, & a 5.5% dividend. What is the after tax cost of preferred stock for my company if the flotation costs I will be charged are 5.5% of the par value? a. 5.5% b. 5.27% c. 7.73% d. 5.82% 33. A firm may ACCEPT a project with an NPV of $0 because a. The project would maintain the wealth of the firm's owners b. The project would enhance the wealth of the firm's owners c. The return on the project would be positive d. The return on the project would be zero

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