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NPV = $6.8 million Question 11 1 pts For a particular firm, which of the following sources of funds will have the highest component cost?
NPV = $6.8 million Question 11 1 pts For a particular firm, which of the following sources of funds will have the highest component cost? In other words, for which of the following is the cost of capital highest for a firm such as General Motors? O preferred stock retained earings debt O new coon stock equity Question 12 1 pts The CFO of Uncle Umberto's Unkcycles (U3) has determined the company's appropriate weighted average cost of capital (WACC) is equal to 125 percent that is, is WACC -12.5%. 3 is hanced with debt and common stock. Based on this information, which of the following statements is correct? The led to maturity (VTM) on US's bonds in 12.5 percent The required rate of retur (U3 should use to evaluate capitalbudgeting projects with average risk is 125 percent. The average interest rate U3 pays its bondholders is 12.5 percent. OU's sets have an average internal rate of return CIRRequal to 125 percent OU3's cost of retained earnings is equal to 12.5 percent 1 pts A section 13
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