Question: HELP OUT PLEASE!! 71. Which is not true about debt financing and the weighted average cost of capital? A. Debt is usually the cheapest source

HELP OUT PLEASE!!HELP OUT PLEASE!! 71. Which is not true about debt financing and

71. Which is not true about debt financing and the weighted average cost of capital? A. Debt is usually the cheapest source of financing B. As the level of debt increases beyond the optimum capital structure, the cost of capital increases C. No debt in the firm's capital structure will minimize the firm's weighted average cost of capital D. The cost of debt and the weighted average cost of capital both go down as the tax rate goes up. 72. Within the capital asset pricing model: A. the risk-free rate is usually higher than the return in the market. B. the higher the beta the lower the required rate of return. C. beta measures the volatility of an individual stock relative to a stock market index. D. beta is added to the market risk free rate. 73. A firm's stock is selling for $85. The dividend yield is 5%. A 7% growth rate is expected for the common stock. The firm's tax rate is 32%. What is the firm's cost of common equity? A. 8.16% B. 12.00% C. 12.35% D. 10.40% 74. A firm's cost of financing, in an overall sense, is equal to its: A. weighted average cost of capital. B. yield from various kinds of marketable securities. C. rate of return from various kinds of marketable securities. D. rate of return of debt required by its investors. 75. The after tax cost of debt will usually be below: A. the cost of dividends. B. the weighted average cost of capital less the cost of equity. C. the cost of equity. D. the floatation cost. 76. The optimal capital structure for firms in cyclical industries should contain than firms in stable industries. A. more debt B. less debt C. an equal amount of debt D. There is no relationship between the cyclical nature of an industry and optimal capital structure

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