Business, 27.06.2019 18:20, paatnguyyen

Wich of the following statements is/are true? a. with no debt, the wacc is equal to the unlevered equity cost of capital. b. with perfect capital markets, a firm's wacc is dependent of its capital structure and is equal to its equity cost of capital only the firm it is unlevered. c. with perfect capital markets as the firm borrows at the low cost of capital for debt, its equity cost of capital rises, but the net effect is that the firm's wacc is unchanged. d. with perfect capital markets, although debt has a lower cost of capital than equity, leverage does not lower a firm's wacc.

Answers: 1

Show answers

Other questions on the subject: Business

Business, 22.06.2019 19:20, Gabby2581

Win goods inc. is a large multinational conglomerate. as a single business unit, the company's stock price is estimated to be $200. however, by adding the actual market stock prices of each of its individual business units, the stock price of the company as one unit would be $300. what is win goods experiencing in this scenario? a. diversification discount b. learning-curveeffects c. experience-curveeffects d. economies of scale

Answers: 1

continue

Business, 22.06.2019 23:40, bakerj8395

Gif the federal reserve did not regulate fiscal policy, monitor banks and provide services for banks, what would most likely be the economic conditions to transact business in the u. s.? the economy would primarily be based on a barter system rather than a fiat system. there would be no discrimination in lending by local banks. the economy would be less efficient and transactions most likely more costly.

Answers: 1

continue

Business, 23.06.2019 00:30, mj1226

How much of your paycheck do you have immediate access to once you deposit it into your bank account a. all of it b. a portion of it c. none of it

Answers: 1

continue

Business, 23.06.2019 02:30, dragon2565

Suppose a starbucks tall latte cost $4.00 in the united states, 5.00 euros in the euro area and $2.50 australian dollars in australia. nominal exchange rates are .80 euros per dollar and 1.4 australian dollars per u. s. dollar. where does purchasing power parity hold? a. both the euro area and australia. b. neither the euro area or australia. c. the euro area but not australia. d. australia but not the euro area.

Answers: 1

continue

Do you know the correct answer?

Wich of the following statements is/are true? a. with no debt, the wacc is equal to the unlevered eq...