1. The weighted average cost (WACC) of the last dollar of new capital that the firm raises, and the marginal cost rises as more and more capital is raised during a given period.
A. marginal cost of capital MCC
B. weighted average cost of capital WACC
C. average cost of capital
D. cost of preferred stock
2. Suppose a 10-year, 15% (coupon rate), monthly-pay bond has a face value of $1,000. If the required return on the bond is 12%, what is the bond's price?
A) $1174.25 B) $1023.68 C) $1169.51 D) $1088.69