Flotation costs are expenses associated with the sale of a division of the firm.

True

False

QUESTION $21$

The pretax cost of debt is the same as

the pretax cost of equity

the cost of retained earnings financing

the firm's bond yield

the CAPM return

QUESTION $22$

The DCF approach estimates the cost of equity as a function of unsystematic risk

dividends and stock price

the market risk premium $($MRP$)$ and the firm's beta

the treasury bill rate