Question 6 (1 point) If the yield to maturity of a bond is greater than its coupon rate, the market value of the bond will always be below its par value.

True False

Question 7 (1 point) The weighted average cost of capital reflects the average cost of the various sources of financing that a firm uses to support its assets. True False

Question 8 (1 point) Total risk, which is measured by beta, can be lowered by adding more stocks to a portfolio. True False

Question 9 (1 point) The after tax cost of debt is equal to one minus the tax rate multiplied by the yield on outstanding debt. True False

Question 10 (1 point) Straight-line voting method is preferred by minority shareholders. True False