3. Second-stage financing occurs: a. when the IPO does not raise sufficient cash. b. after the best efforts of the under

[answerhappygod]

3. Second-stage financing occurs:
a. when the IPO does not raise sufficient cash.
b. after the best efforts of the underwriters.
C prior to the initial public offering.
d. when company founders sell a portion of their shares.
4. SignAGE Quantum Co. has a debt to value ratio of 40%, itsdebt is selling on yield of 6%, and its cost of equity is 12%. Thecorporate tax rate is 40%. The company is now evaluating a newventure into home computer system. The internal rate of return onthis venture is estimated at 13.4%. WACCs of firms in the foodindustry tend to average around 14%. What is Signature Market WACC?Should the project be pursued?
a. The WACC of SignAGE Quantum Co. is 8.64% and since the rateis below than the average IRR of the food market, 14% the newproject should not be pursued.
b. The WACC of SignAGE Quantum Co, is 8.64% and since the rateis below than the average IRR of the food market, 14% the newproject should be pursued.
c. The WACC of SignAGE Quantum C is 6.96% and sincethe rate is below than the average IRR of the food market, 14%The new project should be pursued
d. The WACC of SignACE Quantum is 6.96% and since the rate isbelow than the average IRR of the food market, 14% the new projectshould not be pursued