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MULTIPLE CHOOCE Chome D, 12.94% 6) The cost of issuing new sharcs i Dy 3.09 ycars 11) The aet present value mthod D) all of the ahove 2) When seviewing a project, which of theSllwing csdth C) Net Present Valse (NPV)nehed D) Modified Imtenal Rate of Returs(MIRR) mehod 13) You are in charge of one division of Yeti Supli rvi is wabjoct o capital Your division has4 indivisible projcts b, detalled as foll rationing If you ms sclest peojects subject te D) Peoject 1 oely of $660,000 per what the proehlity index efth.mdw? A) 1.20 15) What is the insernal ese of veurs of the machine B) 13.50% C)21.06% D)18.39% 16) In general, which of the following should be considirod whem calcilating a Sms WACC B) cost of equity. C) firm's capital structure. D) all of above Please refer to the fellow ing information fer the nest foar quests Meacham Corp. wants to issue bonds with an 8% co penna, afaceralue of$1,000,ed10 years to maturity. The coupon is paid semi-armully. Meachm estimates that the bonds wi sell for $1,050 and that flocation costs will equal 510 per beed Meacham Corp.common sock currently sells foe $25 per share, Meacham can sell additionall shares by incurring Botation costs of $2.5 per share. Meacham paid a dividend of $5.00 per share rocently and expects the dividend togrow at a constant rate of4% per year Meachanaboepectstohave$10 milion afreained 9:06 19 of 19 Done B) D) 4,74% B) 23 11% C)24.80% D, 2622% 9) What is the cost of D)23.11% oper 315,000 C) The

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