QUESTION 26

1. If a firm uses short term funding in its capital structure, then the WACC would have a separate component (a fourth weighted measure).

   True

   False

2 points

QUESTION 27

1. A common stock will pay a $3.00 dividend. If the growth rate is 5% and the required return is 8.3%, what is the intrinsic value of the stock?

   		$90.91
   		$95.42
   		$88.29
   		$79.72
   		none of these responses