Which of the following statements about the marginal cost of capital is correct? Assume everything else is equal.

A. An increase in the tax rate will decrease a firm's marginal cost of debt.
B. An increase in a company's stock price will increase its marginal cost of debt.
C. An increase in a company's stock price will increase its marginal cost of issuing new common equity.
D. An increase in the total capital raised during a particular period will decrease a firm's marginal cost of debt.
E. A decrease in the weighted cost of capital (WACC) will decrease a firm's marginal cost of retained earnings.


Answer: A

Business

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An auditor is reviewing sales cutoff as of March 31, 2019. All sales are shipped FOB destination and the company records sales three days after shipment. The auditor notes the following transactions:DateShipped MonthRecorded Selling Price(000's) Cost(000's)March 28 March $192  $200 March 29 March  44   40 March 30 April  77   81 April 2 March  208   220 April 5 April  92   84 If the entity records the required adjustments, the net effect on income (in thousands of dollars) for the period ended March 31, 2019 is

A. a decrease of 12. B. a decrease of 8. C. an increase of 12. D. an increase of 8.

Business

According to the text, the data preparation process begins with ________

A) validating the questionnaires B) evaluating the interviewers C) pretesting the questionnaire D) transcribing data E) checking the questionnaires for completeness

Business

Sally is looking at her company's practices and performance in a specific area and comparing them with other companies. Sally is engaged in the process of benchmarking.

Answer the following statement true (T) or false (F)

Business

How is consumer behavior affected by the "income effect"?

What will be an ideal response?

Business