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Due to having a ______ relationship, when market interest rates decrease, bond prices will ______. Hint: This is the one we skipped in class, but this is an opportunity to learn something. Bond prices and market interest rates move in opposite directions.

Risk is best described by the word ______.  

Common stock is best described as ______ while bonds are best described as ______.

The value of a current cash flow in the future is its ______ and is found by the process of ______

Which of the following is true about the cost of debt and cost of equity when adjusting for taxes?

Financial leverage is caused by a firm using ______ to raise funds since this causes a ______ financing cost. 

Capital structure is concerned with a firm’s mix of ______. 

The value of a future cash flow today is its ______ and is found by the process of ______

Georgia Dog Inc. typically uses debt as their main source of funding and typically only finances with 25% equity. The firm’s after-tax cost of debt has been estimated to be 8% while their after-tax cost of equity is estimated at 16%. If the firm faces a 40% tax rate, what is their WACC? (2)

BONUS #3: The coupon rate is best described as ________________. (1) (Hint: zero, variable, fixed, maximized, minimized, positive, negative, irrelevant, stupid, fictitious, imaginary) (1)