The marginal cost of capital
A) is the firm's cost of debt and equity finance
B) is constant given an optimal capital structure
C) declines as flotation costs alter equity financing
D) refers to the cost of additional financing
Correct Answer:
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Q40: The cost of capital includes
1) cost of
Q41: In the capital assets pricing model, the
Q42: Given the following information:
Q43: The cost of debt is
A) less than
Q44: As a firm uses excessive amounts of
Q46: The firm's cost of debt is 8
Q47: Flotation costs of issuing new securities
A) decrease
Q48: a.Given the following schedules,
Q49: The cost of debt is affected by
1)
Q50: Retained earnings
A) have no cost
B) are the
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