Which of the following statements is correct? a. the component cost of preferred stock is expressed as rp(1 - t). this follows because preferred stock dividends are treated as fixed charges, and as such they can be deducted by the issuer for tax purposes. b. a cost should be assigned to retained earnings due to the opportunity cost principle, which refers to the fact that the firm’s stockholders would themselves expect to earn a return on earnings that were paid out rather than retained and reinvested. c. no cost should be assigned to retained earnings because the firm does not have to pay anything to raise them. they are generated as cash flows by operating assets that were raised in the past, hence they are "free."d. suppose a firm has been losing money and thus is not paying taxes, and this situation is expected to persist into the foreseeable future. in this case, the firm’s before-tax and after-tax costs of debt for purposes of calculating the wacc will both be equal to the interest rate on the firm’s currently outstanding debt, provided that debt was issued during the past 5 years. e. if a firm has enough retained earnings to fund its capital budget for the coming year, then there is no need to estimate either a cost of equity or a wacc
Answers: 1
Business, 22.06.2019 14:10
When paul o’neill joined alcoa as ceo, he set a , that there would be zero workplace accidents. a lot of people in the organization thought this was impossible given how dangerous some aluminum-manufacturing jobs are, but alcoa’s safety record improved tremendously. as the board of governors of the american red cross considers planning, one option is to make strategic plans and then direct managers to align tactical and operational plans accordingly. another option is to have planning specialists managers across the organization make their own plans. why might this organization’s executives opt for the latter approach? check all that apply. (a) the environment is a dynamic one, and department and frontline managers can come up with more responsive plans than can central leadership. (b)resources will be better coordinated across the organization in support of the overall strategy.(c) senior leadership will have more control over the organization’s direction. (d)when managers come up with their own plans, they are likely to be more committed to following through on them.
Answers: 2
Business, 22.06.2019 16:40
Match the situations that will develop one's personality and those that won't peter is surrounded by friends who are always encouraging him jonathan always watches television when he wants to take a break from his books libby sets small targets for herself and strives to achieve them. the smiths indulge in an animated discussion on varied topics every evening after dinner. brook loves junk food and exercises once in a while. develops your personality develops doesn't develop your personality
Answers: 2
Business, 22.06.2019 21:00
In a transportation minimization problem, the negative improvement index associated with a cell indicates that reallocating units to that cell would lower costs.truefalse
Answers: 1
Business, 22.06.2019 22:00
What resourse is both renewable and inexpensive? gold coal lumber mineral
Answers: 1
Which of the following statements is correct? a. the component cost of preferred stock is expressed...
Mathematics, 08.12.2020 21:50
Mathematics, 08.12.2020 21:50
Mathematics, 08.12.2020 21:50
Health, 08.12.2020 21:50
History, 08.12.2020 21:50
Mathematics, 08.12.2020 21:50
Mathematics, 08.12.2020 21:50