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Author Question: Opportunity costs should be included as cash outflows when determining a project's incremental cash ... (Read 81 times)

luvbio

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on: Jul 11, 2018
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

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Reply #1 on: Jul 11, 2018
Answer to Question 1

TRUE

Answer to Question 2

C


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