/quizzes/1433150/take Question 4 1 pts Flotation costs are related to the costs of reducing a company's debt. O True False Question 5 1 pts Cost of preferred stock is its dividend yield. O True O False Question 6 1 pts Cost of common stock is its dividend yield. True O False 1 pts Equity beta is the asset beta adjusted for the debt to equity ratio. O True O False Question 8 1 pts Debt is the only capital component that is adjusted for taxes. True False D Question 9 1 pts Marginal cost of capital is the cost of the next dollar raised. Typically, the marginal cost of capital rises as more capital is raised. True False A project's WACC should be adjusted if it is done outside the country the company is domiciled. True False Question 11 1 pts Which of the following is not an approach for calculating a country risk premium, country equity premium yield to maturity approach sovereign risk spread country credit rating approach D Question 12 1 pts Flotation costs should be taken out of cost of debt O prices cost of equity cost of preferred stock Disney's beta suggests as the market falls. Disney stock falls twice as much the market and Disney's stock price move in opposite directions O as the market rises, Disney stock rises half as much O its stock moves broadly inline with the market D Question 14 1 pts Operating risk includes uncertainty about a firms pricing power and future sales. True False Question 15 1 pts Business risk includes sales risk and financial risk. True False