Tempo Corp will issue preferred stock to finance a new artillery ...

[leilurhhh]

Tempo Corp will issue preferred stock to finance a new artillery line. The firm's existing preferred
  stock pays a dividend of 4.00 per share and is selling for 40 per share.
 
  Investment bankers have
  advised Tempo that flotation costs on the new preferred issue would be 5 of the selling price.
  Tempo's marginal tax rate is 30. What is the relevant cost of new preferred stock?
  A) 7.00 B) 7.37 C) 10.53 D) 15.00 E) 10.00

Question 2

If a project is acceptable using the NPV criterion, then it will also be acceptable using the
  discounted payback period since both methods use discounted cash flows to make the accept/reject
  decision.
 
  Indicate whether the statement is true or false

[mrphibs]

Answer to Question 1

C

Answer to Question 2

FALSE

[leilurhhh]

TY

[mrphibs]

Happy to Help