Based on m& m proposition 2 with taxes, the weighted average cost of capital:
a. is...
Business, 14.12.2019 06:31 harleyy6134
Based on m& m proposition 2 with taxes, the weighted average cost of capital:
a. is equal to the aftertax cost of debt.
b. has a linear relationship with the cost of equity capital.
c. is unaffected by the tax rate.
d. decreases as the debt-equity ratio increases.
Answers: 3
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Answers: 1
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Answers: 3
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The school cafeteria can make pizza for approximately $0.30 a slice. the cost of kitchen use and cafeteria staff runs about $200 per day. the pizza den nearby will deliver whole pizzas for $9.00 each. the cafeteria staff cuts the pizza into eight slices and serves them in the usual cafeteria line. with no cooking duties, the staff can be reduced by half, for a fixed cost of $75 per day. should the school cafeteria make or buy its pizzas?
Answers: 3
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