This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: If external financing needed cannot be obtained due to poor market conditions, a firm could reduce ... (Read 155 times)

lb_gilbert

  • Hero Member
  • *****
  • Posts: 588
on: Jul 10, 2018
If external financing needed cannot be obtained due to poor market conditions, a firm could reduce
  the amount needed by increasing its retention ratio.
 
  Indicate whether the statement is true or false

Question 2

WineCellars Inc currently has a weighted average cost of capital of 12. WineCellars has been
  growing rapidly over the past several years, selling common stock in each year to finance its
  growth.
 
  However, due to difficult economic times this year, WineCellars decides to cut its dividend
  and increase its retained earnings so that the common equity portion of its capital structure will
  include only retained earnings and no new common stock will be sold. WineCellars' weighted
  average cost of capital this year should be
  A) equal to 12. B) greater than 12.
  C) zero, since no new stock will be sold. D) less than 12.
Foundations of Finance ¦ Keown, Petty, Martin ¦ 9th Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

dlook33

  • Sr. Member
  • ****
  • Posts: 344
Reply #1 on: Jul 10, 2018
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 56% of students answer this correctly


lb_gilbert

  • Member
  • Posts: 588
Reply 2 on: Jul 10, 2018
Gracias!

rleezy04

  • Member
  • Posts: 322
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

Russia has the highest death rate from cardiovascular disease followed by the Ukraine, Romania, Hungary, and Poland.

Did you know?

Computer programs are available that crosscheck a new drug's possible trade name with all other trade names currently available. These programs detect dangerous similarities between names and alert the manufacturer of the drug.

Did you know?

The oldest recorded age was 122. Madame Jeanne Calment was born in France in 1875 and died in 1997. She was a vegetarian and loved olive oil, port wine, and chocolate.

Did you know?

Your chance of developing a kidney stone is 1 in 10. In recent years, approximately 3.7 million people in the United States were diagnosed with a kidney disease.

Did you know?

As many as 20% of Americans have been infected by the fungus known as Histoplasmosis. While most people are asymptomatic or only have slight symptoms, infection can progress to a rapid and potentially fatal superinfection.

Examples of animals with external gills. Examples of animals with external gills.
Location of internal and external hemorrhoids. Location of internal and external hemorrhoids.
External anatomy of the heart External anatomy of the heart
Researchers must inform potential participants of a study's procedures so that consent may be o Researchers must inform potential participants of a study's procedures so that consent may be o
Under what conditions can the transition to middle school be associated with declines in grades and ... Under what conditions can the transition to middle school be associated with declines in grades and ...
The tools and equipment needed to perform a compression test include a compression gauge, an air ... The tools and equipment needed to perform a compression test include a compression gauge, an air ...
Video: Congenital Heart Defects Animation

For a complete list of videos, visit our video library