True or False

9. A typical preferred stock is a stock which has no maturity date and which generally pays a fixed dividend into perpetuity.

10. The cost of capital must be less than the internal rate of return of a firms investment in order to accept or say yes(i.e., add value to the firm) the investment.

11. Capital rationing is a financial management process for allocating available funds to acceptable capital budgeting projects.

12. A firms cost of capital (i.e. WACC) is affected by the firms capital structure (i.e., its mix of debt, equity and/or preferred stock).