Business
Business, 30.07.2019 09:20, cody1097

When we use the wacc to assess a project, we assume that the ratio does not change. a. risk to reward b. debt to equity c. volatility to systematic risk d. reward to systematic risk?

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Business, 26.06.2019 03:40, Jenan25
Which of the following statements is correct? a. since debt financing raises the firm's financial risk, increasing the target debt ratio will always increase the wacc.b. since debt financing is cheaper than equity financing, raising a company's debt ratio will always reduce its wacc.c. increasing a company's debt ratio will typically reduce the marginal costs of both debt and equity financing. however, this action still may raise the company's wacc.d. increasing a company's debt ratio will typically increase the marginal costs of both debt and equity financing. however, this action still may lower the company's wacc.e. since a firm's beta coefficient is not affected by its use of financial leverage, leverage does not affect the cost of equity.d. increasing a company's debt ratio will typically increase the marginal costs of both debt and equity financing. however, this action still may lower the company's wacc.
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Business, 31.07.2019 16:10, dbanks701
Swizer industries has two separate divisions. division x has less risk so its projects are assigned a discount rate equal to the firm's wacc minus .75 percent. division y has more risk and its projects are assigned a rate equal to the firm's wacc plus 1 percent. the company has a debt-equity ratio of .48 and a tax rate of 34 percent. the cost of equity is 15.4 percent and the aftertax cost of debt is 5.4 percent. presently, each division is considering a new project. division y's project provides a return of 12.9percent while division x's project is expected to earn 11.5 percent. which project(s), if any, should the company accept?
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Business, 27.08.2019 23:30, goodluck99
Which of the following statements is correct? a. the capital structure that maximizes the stock price is generally the capital structure that alsomaximizes earnings per share.*b. all else equal, an increase in the corporate tax rate would tend to encourage a company to increaseits debt ratio.*c. since debt financing raises the firm's financial risk, increasing a company's debt ratio will alwaysincrease its wacc.d. since debt is cheaper than equity, increasing a company's debt ratio will always reduce its wacc.e. when a company increases its debt ratio, the costs of equity and debt both increase. therefore,the wacc must also increase.
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Business, 28.08.2019 01:00, lnr919
Which of the following statements is correct? a. since debt financing is cheaper than equity financing, raising a company's debt ratio will alwaysreduce its wacc.b. increasing a company's debt ratio will typically reduce the marginal cost of both debt and equityfinancing. however, this action still may raise the company's wacc.*c. increasing a company's debt ratio will typically increase the marginal cost of both debt and equityfinancing. however, this action still may lower the company's wacc.*d. since a firm's beta coefficient it not affected by its use of financial leverage, leverage does notaffect the cost of equity.e. since debt financing raises the firm's financial risk, increasing a company's debt ratio will alwaysincrease its wacc.
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