What is the market value of debt and its' net cost to the firm?
A) 9,642,857; 8.4%.
B) 9,642,857; 12%.
C) 6,750,000; 8.4%.
D) 6,750,000; 12%.
E) 4,725,000; 12%.
Correct Answer:
Verified
Q2: The use of debt is called:
A)operating leverage.
B)production
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