Which of the following statements is CORRECT?
a. When calculating the cost of preferred stock, companies must adjust for taxes, because dividends paid on preferred stock are deductible by the paying corporation.
b. Because of tax effects, an increase in the risk-free rate will have a greater effect on the after-tax cost of debt than on the cost of common stock as measured by the CAPM.
c. If a company's beta increases, this will increase the cost of equity used to calculate the WACC, but only if the company does not have enough reinvested earnings to take care of its equity financing and hence must issue new stock.
d. Higher flotation costs reduce investors' expected returns, and that leads to a reduction in a company's WACC.
e. When calculating the cost of debt, a company needs to adjust for taxes, because interest payments are deductible by the paying corporation.
e
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The three phases involved in building a data warehouse from transactional data are extraction, transforming, and loading.
Answer the following statement true (T) or false (F)
What is the general purpose of projective techniques?
A) to gain information through small groups of people brought together and guided by a moderator through an unstructured, spontaneous discussion B) to explore hidden consumer motives for buying goods and services, by asking respondents to project themselves into a situation C) to review available information about a former situation that has some similarities to the present research problem D) to gather information from those thought to be knowledgeable on the issues relevant to the projective research problem E) to project answers from focus group participants to a much larger population
Which advertising agency specialist is responsible for acting as the voice of the consumer in creating effective advertising?
A) the account executive B) the account planner C) the creative director D) the media planner E) the art director
On January 1, Year 1, Milton Manufacturing Company purchased equipment with a list price of $27,000. A total of $2000 was paid for installation and testing. During the first year, Milton paid $3000 for insurance on the equipment and another $600 for routine maintenance and repairs. Milton uses the units-of-production method of depreciation. Useful life is estimated at 100,000 units, and estimated salvage value is $4000. During Year 1, the equipment produced 14,000 units. What is the amount of depreciation for Year 1?
A. $4480 B. $4004 C. $3500 D. $3920