The least precisely known capital component cost is:
A) debt, because the tax effect confuses things.
B) preferred stock, because it's not used by many companies and people aren't familiar with it.
C) equity because its future cash flows are uncertain.
D) they're all known with about the same level of certainty.
Correct Answer:
Verified
Q2: Capital refers to funds acquired for use
Q3: If a firm is losing money, the
Q5: A project's cost of capital is 10%.
Q6: Although preferred stock is legally a form
Q8: Debt capital:
A)costs the least because it's the
Q12: The cost of capital is:
A) related to
Q14: The historic costs of a firm's capital
Q15: The cost of capital is:
A)the average return
Q16: Which of the following is not a
Q17: The cost of capital is used primarily
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