TF 1. The risk free rate is always more than the WACC. TF 2. The component cost of equity is the dividend yield plus the growth rate. TF 3. The dividend yield is the current dividend divided by the stock price. TF 4. The capital structure of a firm is composed of bonds and stock. TF 5. The weight of bonds is the market value of bonds divided by the total market value of the company. TF 6. The weighted average cost of capital is the required rate of return for shareholders. TF 7. The market value of stock is the number of shares outstanding times the price per share. TF 8. The cost of stock is adjusted for taxes because dividend payments are a tax deductible expense. TF 9. The anticipated dividend is the current dividend multiplied by one plus the growth rate. TF 10. The coupon payment is the coupon rate times the market price per bond