Opportunity costs should be included as cash outflows when ...

[luvbio]

Opportunity costs should be included as cash outflows when determining a project's incremental cash flows.
 
  Indicate whether the statement is true or false

Question 2

A firm has determined it can issue preferred stock at 115 per share par value. The stock will pay a 12 annual dividend. The cost of issuing and selling the stock is 3 per share. The cost of the preferred stock is ________.
 
  A) 6.4 percent.
  B) 10.4 percent.
  C) 10.7 percent.
  D) 12 percent.

[sarahccccc]

Answer to Question 1

TRUE

Answer to Question 2

C