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please answer Question 7 and Question 8 in 25 minutes. I will rate your work Question 7 4 pts Which of the following statements is
please answer Question 7 and Question 8 in 25 minutes. I will rate your work
Question 7 4 pts Which of the following statements is CORRECT? Since debt capital can cause a company to go bankrupt but equity capital cannot debt is riskier than equity, and thus the after tax cost of debt is always greater than the cost of equity Because no flotation costs are required to obtain capital es retained earnings, the cost of retained earnings is generally lower than the after-tax cost of debt The tax-adjusted cost of debt is always greater than the interest rate on debt. provided the company does in fact pay taxes Higher Notation costs tend to reduce the cost of equity capital If a company assigns the same cost of capital to aforis projects regardless of ench project's risk, then the company is cely to reject some sale projects that actually should accept and to accept some thiky projects that it should reject. Next Previous Nato Submit D Question 8 4 pts A company is considering a project that has the following cash flow data. What the project's IRR? Note that a project's projected IRR can be less than the WACC or negative, in both cases it will be rejected. Year 0 1 2 3 4 Cash flows -$1,100 $325 $325 $325 $325 $325 11:24 16,20% 14.59% 1518% 13:43 Nex Previous Not so Sub CStep by Step Solution
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