Rights offerrings are issues of common stock offered to existing shareholders allowing them to aroid the dilution that can occure with stock issue A) True B) False a new 2) Brown automotive group has a capital structure of 75% equity and 25% debt. The firm does not issue perferred stock and the tax rate is 25%. The cast of equity is 14.5% and the pre tax cost of debt is 8,8%. What is the weighted average cost of capital 11.67% B) 12.53% c) 10.974 0) 12.88% / 0.86% 12 3 which of the following of best definer e the cost of capital 7 the average cost of raising new op capital for the firm e 8 the maximum rate of return which a firm 'must earning on its investment to provide a reture to call the providers of funds based on the risks of those assets c) the cost of funding the Elo firms liabilites d the averge cost of the firms fees avers Le 2) the copoun rate of debt