7. Using the company cost of capital to evaluate a project is: I. Always correct II Always incorrect III Comect for projects that are about as risky as the average of the firm's other assets A. I only B. II only C. III only D. I and III only 8. One strength of payback period is that it fully accounts for the time value of money. A. True B. False 9. The cost of retained earnings is either very low or close to zero. A. True B. False 10. A tax adjustment must be made in determining the cost of A. long-term debt B. common stock C. preferred stock D. retained earnings