Which of the following statements regarding the cost of capital is (are) correct?
I. The weighted cost of capital is the discount rate used when computing the net present value.
II. The after-tax cost of capital is weighted by the proportions of the capital components in the firm's long-range target capital structure
A) Only statement I is correct.
B) Only statement II is correct.
C) Both statements I and II are correct.
D) Neither statement I nor II is correct.
C
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In an effort to differentiate its offerings from its competitors, Pegasus Computers decided to add an extra USB port in all its laptops besides providing a free pair of Delphi power bass headphones with every Pegasus laptop. Although the additional features increased the price of the laptops by $500, Pegasus was confident that the strategy would help boost demand for its laptops substantially. This is an example of ________.
A) good-value pricing B) markup pricing C) break-even pricing D) value-added pricing E) cost-based pricing
What is the objective function for this problem? Use the notation Xij, where i and j correspond to the node numbers indicated in the diagram
What will be an ideal response?
Elsa, the owner of Fertile Farm, sells Gina a right to camp on Fertile land overnight. Gina's right is
A. a leasehold estate. B. a license. C. an easement. D. a profit.
Under a revolving credit agreement, the _____ is lower than the interest on the borrowed funds, but it can amount to a fairly hefty charge if the firm has a large unused balance.
A. commitment fee B. brokerage fee C. origination fee D. utilization fee