KSS corporation uses 30% debt, 10% preferred stock, and 60% equity to finance new capital expenditures. The after tax cost of debt is 6%, the cost of preferred stock is 9%, the cost of retained earnings is 12% and the cost of a new stock issue is 14%. What is the WACC if a new stock issue is needed?

8.4%

9.8%

11.9%

11.1%

Consider the following series of cash flows:

Cash Flow: -40 20 20 10 20

Time: 0 1 2 3 4

If you are using a 10% discount rate, which of the following is true?

Payback will be smaller than discounted payback

Payback will be larger than discounted payback

Payback and discounted payback will both be less than 0

Payback and discounted payback will be the same