True False O O o O Q O O 6. Generally, market values are less desirable than book values for weighing a firm's funding components. 7. The market risk premium is a component of the dividend growth model. 8. For a firm selling stock for the first time, the SML model is more appropriate than the dividend growth model. 9. If the dividend is $8 and the cost of preferred stock is 18%, its price 20%. 11. If the last dividend paid = $5, the dividend growth rate = 6% and the current stock price = $100, the cost of equity > 11%. 12. Both bank loans and bond sales are examples of debt capital. o Q O 0 o O o O 13. Yield-to-maturity and Rd are not synonymous