1. Which one of the following will decrease the net present value of a project?

a. Increasing the amount of the final cash inflow.

b. Decreasing the required discount rate.

c. Increasing the value of each of the project's discounted cash inflows.

d. Moving each of the cash inflows forward to a sooner time period.

e. Increasing the project's initial cost at time zero.

2. A firm has 750 bonds outstanding that are selling for $989 each, 2,500 shares of preferred stock with a market price of $47 per share, and 30,000 shares of common stock valued at $56 per share. What weight should be assigned to the common stock when computing the firm's weighted average cost of capital?

a. 54.00%

b. 55.45%

c. 66.16%

d. 62.08%

e. 47.11%