30.The weighted average of the firm’s costs of equity, preferred stock, and aftertax debt is the:a.reward to risk ratio for the firm.b.expected capital gains yield for the stock.c.expected capital gains yield for the firm.d.portfolio beta for the firm.e.weighted average cost of capital (WACC).
31.The costs incurred by the firm when new issues of stocks or bonds are sold are called:
f.32.The cost of equity for a firm is:
33.The pre-tax cost of debt for a firm:
34.The capital structure weights used in computing the weighted average cost of capital are:a.constant over time provided that the debt-equity ratio changes in unison with the market values.b.based on the face value of the firm’s debt.c.computed using the book value of the long-term debt and the shareholder’s equity.d.based on the market value of the firm’s debt and equity securities.