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1. The weighted average cost (WACC) of the last dollar of new capital that the firm raises, and the marginal cost rises as more and more capital is raised during a given period.

A. marginal cost of capital MCC

B. weighted average cost of capital WACC

C. average cost of capital

D. cost of preferred stock

2. Suppose a 10-year, 15% (coupon rate), monthly-pay bond has a face value of $1,000. If the required return on the bond is 12%, what is the bond's price?

A) $1174.25 B) $1023.68 C) $1169.51 D) $1088.69

Financial Management, Finance

  • Category:- Financial Management
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