Given the following information on S & G Inc.'s capital structure, compute the company's weighted
average cost of capital.
Type of Capital
Percent of
Capital Structure
Before-Tax
Component Cost
Bonds 40% 7.5%
Preferred Stock 5% 11%
Common Stock (Internal Only) 55% 15%
The company's marginal tax rate is 40%.
A) 13.3% B) 10% C) 7.1% D) 10.6%
D
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A restriction placed on the amount of a product allowed to enter or leave a country is referred to as a
A. tariff. B. GATT tax. C. subsidy. D. excise tax. E. quota.
All of the following persons are covered under Larry's PAP except:
A) Larry's wife, who borrows a neighbor's car B) Larry's son, who borrows a friend's car to get to work C) Larry, while driving a car he borrowed from his employer to run an errand D) Larry, while driving a borrowed commercial wrecker truck to tow his car to a repair garage
In order to test the significance of a multiple regression model involving 5 independent variables and 50 observations, the numerator and denominator degrees of freedom for the critical value of F are 5 and 45 respectively
Indicate whether the statement is true or false
However, ___________________ is needed to explain why firms prefer FDI to licensing or exporting. _________ is preferable to ________ and FDI as long as transportation costs and trade barriers are low.
Fill in the blank(s) with the appropriate word(s).