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Most Businesses Will Acquire New Assets If _______

Question 62

Multiple Choice

Most businesses will acquire new assets if _______.


A) the rate of return generated by those assets is lower than the after-tax marginal cost of debt financing associated with acquiring additional assets
B) the rate of return generated by those assets exceeds the after-tax marginal cost of debt financing associated with acquiring additional assets
C) they have surplus amounts of cash which they need to spend
D) their stockholders vote to do so

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