Homework 9.0 - 100%.pdf - Morgan Arledge myBb 2 Courses...

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Course ContentHomeworkReview Test Submission: CH 92017SP_FINC-3313-01 Principles of Finance 2017SPReview Test Submission: CH 9UserMorgan ArledgeCoursePrinciples of Finance 2017SPTestCH 9Started3/30/17 9:53 PMSubmitted3/30/17 10:12 PMStatusCompletedAttempt Score10 out of 10 points Time Elapsed19 minutesResults DisplayedSubmitted AnswersQuestion 1A firm can retain more of its earnings if it can convince its stockholders that it will earn atleast their required return on the reinvested funds.
Question 2As the need for capital increases beyond the optimum capital structure, the cost of debtfinancing will ________, ________ the firm's weighted average cost of capital.
Question 3The cost of retained earnings is generally higher than both the cost of debt and cost ofpreferred stock.

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