47 Which of the following constitute financial capital? of 1 Select one: O A. Common stock, bonds, and working capital O B. Bonds, preferred stock, and common stock OC. Preferred stock, working capital, and bonds D. Each of these answers is correct 00 A firm's overall cost of financing is equal to: 1. Its weighted average cost of capital II. The required rate of return of its investors III. The returns being generated by investments of 1 Select one: A. I only B. I and II only O C.I and Ill only D. I, II, and III Given an optimal capital structure that is 50% debt and 50% common stock, calculate the weighted average cost of capital for Stone Corporation given the following additional information: Bond coupon rate Bond yield to maturity Dividend, expected Price, common Growth rate Corporate tax rate 14% 10% $5 $100 8% 30% Select one: A. 9.50% B. 10.00% C. 11.50% D. 12.00% BBB The time value of money is important to financial decisions because it: 1. Recognizes that $1 today is worth more than $1 received in the future 11. Can be used to compare the future value of cash flows from different investments III. Emphasizes the importance balancing the budget instead of deficit spending Select one: O A. I only B. I and Il only C. I and Ill only D. I, II, and I Lewis Enterprises, Inc. plans to purchase a new machine in 10 years. At that time, the total cost of the machine will be $170,000. If Lewis Enterprises can put aside $10,000 at the beginning of each year, what rate of return must be earned in order to buy the new machine? Select one: A. Between 11% and 12% B. Between 8% and 9% C. 17% D. None of these answers are correct