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Can someone please help w/these finance questions?


I need help with these finance questions. This class is kicking my ***.

1 - For bonds, price sensitivity to a given change in interest rates generally increases as years remaining to maturity increases.

True or False?

2 - The cost of capital should reflect the average cost of the various sources of long term funds a firm uses to support its assets.

True or False.

3 - A firm going from a lower to a higher tax bracket could increase its use of debt, yet actually wind up w/a lower after tax cost of debt.

True or False?

4 - Because preferred stock stock dividends are not tax deductible, the cost of preferred stock to the issuing firm is the same on a before tax and after tax basis.

True or False.

5 - If we develop a weigthted average of the possible return outcomes, multiplying each outcome or state by its respective probability of occurrence for a particular stock, we can construct a payoff matrix of expected returns.

True or False?

Thank you 4 the help!

All true

Sooo.......Basically, you're cheating your way
thru school on the internet.

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