The cost of capital includes the cost of equity, the cost of long-term debt and the cost of other liabilities.

Question 20 options:

	True
	False

When a company goes public, it declares what its dividend will be so investors know what their annual income will be.

Question 16 options:

	True
	False

A reasonable way to eliminate diversifiable risk is to by a large group of positively correlated stocks.

Question 12 options:

	True
	False

A capital expenditure is an outlay of funds by a firm for a project whose benefits are expected to be generated over at least 5 years.

Question 5 options:

	True
	False