3. Second-stage financing occurs:

a. when the IPO does not raise sufficient cash.

b. after the best efforts of the underwriters.

C prior to the initial public offering.

d. when company founders sell a portion of their shares.

4. SignAGE Quantum Co. has a debt to value ratio of 40%, its debt is selling on yield of 6%, and its cost of equity is 12%. The corporate tax rate is 40%. The company is now evaluating a new venture into home computer system. The internal rate of return on this venture is estimated at 13.4%. WACCs of firms in the food industry tend to average around 14%. What is Signature Market WACC? Should the project be pursued?

a. The WACC of SignAGE Quantum Co. is 8.64% and since the rate is below than the average IRR of the food market, 14% the new project should not be pursued.

b. The WACC of SignAGE Quantum Co, is 8.64% and since the rate is below than the average IRR of the food market, 14% the new project should be pursued.

c. The WACC of SignAGE Quantum C is 6.96% and since the rate is below than the average IRR of the food market, 14% The new project should be pursued

d. The WACC of SignACE Quantum is 6.96% and since the rate is below than the average IRR of the food market, 14% the new project should not be pursued