Author Question: Adventure Outfitter Corp can sell common stock for 27 per share and its investors require a 17 ... (Read 35 times)

ap345

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Adventure Outfitter Corp can sell common stock for 27 per share and its investors require a 17
  return. However, the administrative or flotation costs associated with selling the stock amount to
  2.70 per share.
 
  What is the cost of capital for Adventure Outfitter if the corporation raises money
  by selling common stock?
  A) 17.00 B) 27.00 C) 18.89 D) 18.33

Question 2

If a project is acceptable using the NPV criteria, it will also be acceptable when using the
  profitability index and IRR criteria.
 
  Indicate whether the statement is true or false


welcom1000

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Answer to Question 1

C

Answer to Question 2

TRUE



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