The net proceeds used in calculation of the cost of long-term debt are funds actually received from the sale after paying for flotation costs and taxes

Given the following cash flows, what is the future value at year six when compounded at an interest rate of 8.0%?

Year 0 2 4 6 Cash Flow $5,000 $7,000 $9,000 $11,000 A) $38,955.39 B) $56,687.43 C) $42,074.42 D) $32,000.00

(I) Restrictive covenants often limit the amount of dividends that firms can pay the stockholders

(II) Most corporate indentures include a call provision, which states that the issuer has the right to force the holder to sell the bond back. A) (I) is true, (II) false. B) (I) is false, (II) true. C) Both are true. D) Both are false.