A company's capital structure is made up of 40% debt and 60% common equity (both at market values). The interest rate on bonds similar to those issued by the company is 8%. The cost of equity is estimated to be 15%. The income tax rate is 40%
The company's weighted cost of capital is A) 11.5%.
B) 12.2%.
C) 10.9%.
D) 8.9%.
C
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Government intervention in agricultural markets in the U.S. began
A) during the Korean War. B) during World War II to ensure that enough food was available for domestic consumption. C) after World War I in order to assist farmers to adjust from a war-time economy to a peace-time economy. D) during the Great Depression.
The underground economy refers to
a. all market activity that goes unreported to the government b. all market activity that is not subject to government taxation c. all illegal activity d. transactions between U.S. citizens and foreign nationals e. rent-seeking activities on the part of private citizens
The relationship between sales and revenue is
A) an inverse relationship. B) a direct relationship. C) a negative relationship. D) independent.
An increase in net taxation increases aggregate supply.
Answer the following statement true (T) or false (F)