Even if a firm obtains all of its common equity financing from retained earnings, its marginal cost of capital (MCC) schedule could still increase if very large amounts of new capital are raised.

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


True

Even if a firm obtains all of its common equity financing from retained earnings, its MCC schedule might still increase if the cost of debt increases as the firm uses greater amounts of debt or if the cost of preferred stock increases at some level.. See 11-2: Weighted Average Cost of Capital (WACC)

Business

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List and briefly describe the five ordered levels of human needs according to Abraham Maslow

What will be an ideal response?

Business

Net sales – Cost of merchandise sold =

a. Operating income; b. Operating expenses; c. Other expenses; d. Gross profit; e. Cost of goods sold

Business

Which of the following is not true?

a. When management outsources their organization's IT functions, they also outsource responsibility for internal control. b. Once a client firm has outsourced specific IT assets, its performance becomes linked to the vendor's performance. c. IT outsourcing may affect incongruence between a firm's IT strategic planning and its business planning functions. d. The financial justification for IT outsourcing depends upon the vendor achieving economies of scale.

Business

The SCOR model ______.

A. has 42 key indicators B. uses metrics organized in a hierarchical structure C. was developed during World War II D. was originally used by Henry Ford

Business