Which of the following statements is correct? when calculating the cost of debt, a company needs to adjust for taxes, because interest payments are deductible by the paying corporation. when calculating the cost of preferred stock, companies must adjust for taxes, because dividends paid on preferred stock are deductible by the paying corporation. because of tax effects, an increase in the risk-free rate will have a greater effect on the after-tax cost of debt than on the cost of common stock as measured by the capm. if a company's beta increases, this will increase the cost of equity used to calculate the wacc, but only if the company does not have enough retained earnings to take care of its equity financing and hence must issue new stock. higher flotation costs reduce investors' expected returns, and that leads to a reduction in a company's wacc.
Answers: 1
Business, 22.06.2019 03:30
He aldermanalderman company has prepared a sales budget of 42 comma 00042,000 finished units for a 3-month period. the company has an inventory of 10 comma 00010,000 units of finished goods on hand at december 31 and has a target finished goods inventory of 11 comma 00011,000 units at the end of the succeeding quarter. it takes 44 gallons of direct materials to make one unit of finished product. the company has inventory of 64 comma 00064,000 gallons of direct materials at december 31 and has a target ending inventory of 53 comma 00053,000 gallons at the end of the succeeding quarter. how many gallons of direct materials should aldermanalderman company purchase during the 3 months ending march 31? select the labels and enter the amounts to calculate the direct materials (gallons) to be purchased.
Answers: 3
Business, 22.06.2019 05:20
Social computing forces companies to deal with customers as opposed to
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Which of the following statements is correct? when calculating the cost of debt, a company needs to...
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