Sunk costs are always excluded from capital budgeting analysis.

Part a:

	True
	False

Which of the following correctly ranks the costs of debt (r_d), preferred stock (r_p), retained earnings (r_s), and new common stock (r_e) from least costly to most costly for firms?

Part b options:

	rp < rs < re < rd
	re < rs < rp < rd
	rp < rs < rd < re
	rd < rp < rs < re

The total annual return on a bond is indicated by a bond's:

Part c options:

	Coupon rate
	Yield to maturity
	Current yield
	Capital gains yield