a c. C a 28. The weighted average of the firm's costs of equity, preferred stock, and aftertax debt is the Toward to risk ratio for the firm b expected capital gains yield for the stock. expected capital gains yield for the fin d portfolio beta for the firm, weighted average cost of capital (WACC) 29. All else constant, the net present value of a project increases when the discount rate increases b each cash inflow is delayed by one year c the initial cost of a project increases d the rate of retum decreases all cash inflows occur during the last year of a project's life instead of periodically throughout the life of the project 30. The principal amount of a bond that is repaid at the end of the loan term is called the bond's coupon face value c maturity d yield to maturity coupon rate 31. The rate of return required by investors in the market for owning a bond is called the a coupon b face value c maturity d. yield to maturity e coupon rate + b e 32. The annual coupon of a bond divided by its face value is called the bond's: coupon b. face value. maturity d yield to maturity c. coupon rate 33. An agreement giving the bond issuer the option to repurchase the bond at a specified price prior to maturity is the provision a sinking fund b. call Seniority d collateral c. trustec 34. The bonds of Frank's Welding, Inc. pay an 8 percent coupon, have a 7.98 percent yield to maturity and have a face value of $1,000. The current rate of inflation is 2.5 percent . What is the real rate of return on these bonds? 5.32 percent b. 5.35 percent 5.37 percent 5.42 percent 5.48 percent a C d