The firm's cost of capital represents the maximum rate of return that a firm can earn from its capital budgeting projects to ensure that the value of the firm increases.
Answer the following statement true (T) or false (F)
False
The cost of capital is used in the capital budgeting process so that a firm makes correct accept/reject decisions and its level of financing is optimal. If it uses any other rate, its capital budget will not be optimal. See 11-3: Combining the MCC and Investment Opportunity Schedules (IOS)
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Connall runs the information technology department at a successful university. He knows that the university needs to replace its current learning management system, which is used for all online classes. However, it’s been many years since he last researched this type of product, and he’s not sure what other options there are now. With which type of resource is Connall struggling?
a. human b. financial c. physical d. informational
If management wants to maximize its stock price, and if it believes that the dividend irrelevance theory is correct, then it must adhere to the residual distribution policy.
Answer the following statement true (T) or false (F)
A retailer, through its extensive selection and high service levels, is able to attract shoppers from long distances. This phenomenon is known as _____
a. cognitive dissonance b. outshopping c. store loyalty d. extended decision making
The data flow diagram graphically characterizes data processes and flows in a business system
Indicate whether the statement is true or false