30) The dividend growth model: A) assumes dividends increase at a decreasing rate. B) cannot be used to value constant dividend stocks. c) can be used to d D) only values stocks at Time O E) requires th value both dividend-paying and non-dividend-paying stocks e growth rate to be less than the required return. 31) The actual interest rate on a loan that is compounded monthly but expressed as an anmal sn rate is referred to as the A) periodic monthly B) stated c) discounted annual D) effective annual E) consolidated monthly rate. 32) The cost of capital for a new project A) is dependent upon the firm's overall capital structure. B) is determined by the overall risk level of the firm. C) is dependent upon the source of the funds obtained to fund that project. D) depends upon how the funds raised for that project are going to be spent. E) should be applied as the discount rate for all other projects considered by the firm 33) A project with an initial cost of S65,550 is expected to generate annual cash flows of 33) $17,900 for the next 6 years. What is the project's internal rate of return? C) 16.23% D) 15.42% E) 14.61% A) 17.59% B) 18.04% 34) 34) A firm's managers realize they cannot monitor all aspects of their projects but do want to maintain a constant focus on the key aspect of each project in an attempt to maximize their firm's value. Given this specific desire, which type of analysis should they require for each project and why? A) Accounting breakeven; to ensure each project earns its required rate of return B) Financjal breakeven; to ensure each project has a positive NPV c) Sensitivity analysis; to identify the key variable that affects a project's profitability D) Cash breakeven; to ensure the firm recoups its initial investment E) Scenario analysis; to guarantee each project will be profitable 35) payments. The bond currently sells for $946 and matures in 22 years. The par value is S1000 and the company's tax rate is 39 percent. What is the company's aftertax cost of debt? 35) Galvatron Metals has a bond outstanding with a coupon rate of 6 percent and semiannual D)4.11% E) 3.88% C) 5.94% B) 6.37% A) 3.59%