For a particular firm, depending on tax rates, flotation costs, and the attitude of investors, the cost of new common equity, re, can be less than, equal to, or greater than its before-tax cost of debt, rd.
Answer the following statement true (T) or false (F)
False
The cost of external equity capital is similar to the cost of retained earnings except it is higher because the firm incurs flotation costs when it issues new common stock. See 11-1: Component Costs of Capital
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The stage in the new product process that occurs first is the ________ stage
A) idea generation B) product development C) test marketing D) product soft launch E) concept testing
David’s boss Jerome allows David to park in his reserved corporate parking space when Jerome is out of the country on business. David most likely ______.
A. is part of the company’s out-group B. has a high-quality relationship with his boss C. gets little feedback about his performance D. does not do extra work beyond his job description
The parol evidence rule limits the types of evidence that be used to prove terms of an agreement
a. True b. False
Buy It Now leases a snow blower for one year from Blow It Out Your Ear to clear the parking lot next to its retail outlet. The lease says the snow blower is leased "as is". After one week the snow blower breaks down completely
Buy It Now demands that Blow It Out Your Ear pay for the repair, but it points to the "as is" clause. Which of the following, if any, apply to this transaction? A) The Sale of Goods Act. B) The Consumer Protection Act (or equivalent) C) The Occupier's Liability Act D) The Hazardous Products Act E) None of the above