Question 19 (1 point)

One project has a base NPV of $ 155,000. To finance this project, the company issued shares for an amount of $ 600,000. Knowing that the issue costs represent 7.5% of the total issue, calculate the project's NPV.

Options for question 19:

$ 200,000

- $ 600,000

$ 110,000

- $ 120,000

$ 155,000

Question 20 (0.5 points)

According to the hierarchical financing preference theory, the company uses, in order, the following sources of financing: (1) equity, (2) debt, and (3) new issuance of common shares.

Options for question 20:

True

False

Question 21 (0.5 points)

The nature of a company's assets in no way influences its debt capacity.

Options for question 21:

True

False