To calculate the cost of new common stock

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Reference no: EM131948543

1. (TRUE or FALSE) The firm using the hedging instruments such as a forward, futures, or swap contract insulates itself from the foreign exchange risk.

2. (TRUE or FALSE) To calculate the cost of new common stock, we must adjust the Dividend Growth Model equation for floatation costs of the new common shares.

Reference no: EM131948543

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