Which of the following statements is CORRECT?
A. WACC calculations should be based on the before-tax costs of all the individual capital components.
B. Flotation costs associated with issuing new common stock normally reduce the WACC.
C. If a company's tax rate increases, then, all else equal, its weighted average cost of capital will decline.
D. An increase in the risk-free rate will normally lower the marginal costs of both debt and equity financing.
E. A change in a company's target capital structure cannot affect its WACC.
Answer: C
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A. align with common enemies B. establish common expectations C. establish superordinate goals D. manage time constraints and deadlines
If a revenue expenditure is incorrectly recorded on a company's books as a capital expenditure, which of the following statements will be true?
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________ involve systematic discussions and reviews of performance episodes.
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The amount by which a department's sales exceed its direct expenses is:
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