problem1: When determining the after __________ tax cost of a bond, the face value of the issue must be adjusted to the net proceeds amounts by considering

[A] The approximate returns

[B] The taxes

[C] The risk

[D] The floatation costs

problem2: The Corporation has ten million dollars in 10 percent preferred stock outstanding and a 40 percent tax rate. The amount of earnings before interest and taxes [EBIT require to pay the preferred dividends is]

[A] $600,000

[B] 1,666,667

[C] 1 million dollars

[D] $400,000

problem3:  The investment opportunity scheduled combined with the weighted marginal costs of capital indicates

[A] Which projects are acceptable given the firm's cost of capital

[B] Which combination of projects will fit within the firm's capital budget

[C] Those projects that a firm should select

[D] Those projects that will result in the highest cash flows