Question
put True or false questions and justify why false 1- Capital structure has no impact on WACC. 2- Usually cost of debt is more than
put True or false questions and justify why false 1- Capital structure has no impact on WACC. 2- Usually cost of debt is more than cost of equity. 3- YTM ignores capital gains and capital loss. 4- There is no optimal capital structure . Do you agree? 5- Decreasing in market interest rate will cause increasing in bond value. 6- Bond is selling at discount when coupon rate is less than market interest rate. 7- According to issuer of bond, bonds can be classified into subordinated and unsubordinated. 8- Euro bond is a type of foreign bonds. 9- Both common stock and preferred stock has the same growth rate. 10- Approximation method is more accurate than IRR in calculating YTM.
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