In an efficient market, investors will only find positive-NPV trading opportunities if they have some form of competitive advantage over other investors.

Group of answer choices

True

False

2)

Capital budgeting is the process of allocating funds to the firm's investment projects.

Group of answer choices

True

False

3)

BC Brewery issues $50 million in straight bonds at an original issue discount of 1% and a coupon rate of 7.5%. The firm also pays underwriting fees of 3.5% on the face value of the bonds. What are the net proceeds to BC Brewery from the bond issue?

Group of answer choices

$49.5 million

$47.75 million

$48.25 million

$50 million

$44 million