Which of the following statements is CORRECT?
Select one:
a. The cost of capital used to evaluate a project should be the cost of the specific type of financing used to fund that project, i. e., it is the after-tax cost of debt if debt is to be used to finance the project or the cost of equity if the project will be financed with equity.
b. The after-tax cost of debt that should be used as the component cost when calculating the WACC is the average after-tax cost of all the firms outstanding debt.
c. Suppose some of a publicly-traded firms stockholders are not diversified; they hold only the one firms stock. In this case, the CAPM approach will result in an estimated cost of equity that is too low in the sense that if it is used in capital budgeting, projects will be accepted that will reduce the firms intrinsic value.
d. The cost of equity is generally harder to measure than the cost of debt because there is no stated, contractual cost number on which to base the cost of equity.
e. The bond-yield-plus-risk-premium approach is the most sophisticated and objective method for estimating a firms cost of equity capital.
Answers: 1
Business, 21.06.2019 17:10, evelyng58
Suppose you have just been hired as the chief diversity officer of a large company. previous mentoring programs at this company have not been successful. after inquiring about previous efforts, you discover that most mentor pairs met just a few times, but very few lasting or meaningful mentoring relationships were created. there were also a significant number of employees that did not even attempt to seek out a mentor relationship. which of the following may be a reason why prior mentoring programs at your company failed? check all that apply. a) minorities and women are much less likely to develop mentoring relationships than white malesb) mentoring is not an effective way for organizations to develop female and minority employeesc) due to specific laws governing appropriate workplace behavior, senior-level male executives were reluctant to cultivate mentoring relationships with female employees, fearing negative repercussionsd) fear of creating a future competitor within the company, senior-level female executives were hesitant to mentor other female employees
Answers: 3
Business, 22.06.2019 16:40, krystalsozaa
Determining effects of stock splits oracle corp has had the following stock splits since its inception. effective date split amount october 12, 2000 2 for 1 january 18, 2000 2 for 1 february 26, 1999 3 for 2 august 15, 1997 3 for 2 april 16, 1996 3 for 2 february 22, 1995 3 for 2 november 8, 1993 2 for 1 june 16,1989 2 for 1 december 21, 1987 2 for 1 march 9, 1987 2 for 1 a. if the par value of oracle shares was originally $2, what would oracle corp. report as par value per share on its 2015 balance sheet? compute the revised par value after each stock split. round answers to three decimal places.
Answers: 1
Which of the following statements is CORRECT?
Select one:
a. The cost of cap...
Select one:
a. The cost of cap...
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