answer for 14

QUESTION 14 If you were told that in the future they would finance With 20% debt no new preferred, and 80% common: a. this would have no impact on the cost of capital calculated in the question above b.you should use these explicitly stated financing proportions in the calculation C. it depends d.the cost of capital is based on past financing proportions, not future Question Completion Status: QUESTION 12 After calculating the value of each source of funds, you determine debt = 4096; preferred = 10%; common - 50%, estimate the cost of capital, assuming the cost of new debt - 696: preferred = 109; common - 14%, for a company in the 30% tax bracket a. 10.49% ob.9.796 OC. 8.796 d. it depends QUESTION 13 Based on the information in the previous question, if this company were to invest in a project with a 0 NPV, what rate of return would the stockholders expect to earn? a. Zero b. the IRR c. the cost of capital d. 1496