True or false: The cost of capital is the investors cost in the form of interest payments and dividends.

True or false: Total common equity is the difference between retained earnings and paid in capital.

True or false: Debt may be more advantageous than equity because equity can improve the companys financial position as measured by various analytical ratios.

True or false: The weighted average is the sum of the W R products.

True or false: If company FGH has three loans, $600,000 at 3%; $800,000 at 4%; and $1,500,000 at 8%, the weighted average of the loans is 5.8%.

True or false: When using the WACC formula to determine the capital costs of a new project, you can compare it to ROIC to determine whether the return will be sufficient to pay for the capital.

True or false: The value of common stock is more stable than preferred stock because the dividends are normally a fixed amount every year.

True or false: Firms use capital for expansion.

True or false: There are three sources of capital.

True or false: The value that certain kinds of dividends are calculated on is referred to as a par value.