1.what might we expect to see in practice in the relative costs of different sources of capital?;2. how can a firm lower its cost of capital? what is the effect of the flotation costs associated with a new security issue on a firm's weighted average cost of capital?;3. What is the conversion value of a bond that is convertible into 25 shares of common stock that is currently selling $42.35?;A. $1,000.00;B. $1,058.75;C. $42.35;D. not enough information to tell;4. debt instruments that have a maturity between two and ten years are called __________.;A. bills;B. bonds;C. notes;D. none of the above;5. Conversion features allow companies to pay ______ rates interest.;A. higher;B. lower;C. the same;D. there is no relationship between interest rates and conversion.
Paper#21637 | Written in 18-Jul-2015Price : $27