The percentage used in the percent of sales calculation can come
A) from the most recent financial statement item as a percent of current sales.
B) from an analyst's judgment.
C) from an average computed over several years.
D) from any of the above or a combination of the above.
Question 2
All the following variables are used in computing the cost of debt EXCEPT
A) risk-free rate. B) number of years to maturity.
C) market price of the debt. D) maturity value of the debt.