1.How do tax considerations affect the cost of debt and the cost of equity?
2.If dividends paid to common stockholders are not legal obligations of a corporation, is the cost of equity zero? Explain your answer
3.What is the investment opportunity schedule (IOS)? How does it help financial managers make business decisions?
4.What is a marginal cost of capital schedule (MCC)? Is the schedule always a horizontal line? Explain
5.For a given IOS and MCC, how do financial managers decide which proposed capital budgeting projects to accept, and which to reject?