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

Author Question: Which one of the following statements is correct concerning the weighted average cost of capital (WACC)? (Read 89 times)

rayancarla1

  • Hero Member
  • *****
  • Posts: 571
on: Apr 25, 2021
Which one of the following statements is correct concerning the weighted average cost of capital (WACC)?
◦ The pre-tax rate of return on the debt is the rate that is relevant to the computation of the WACC.
◦ When computing the WACC, the weight assigned to the preferred stock is equal to the coupon rate multiplied by the par value assigned to the preferred stock.
◦ A firm's WACC will decrease as their corporate tax rate decreases.
◦ The weight of the common stock used in the computation of the WACC is based on the number of shares outstanding multiplied by the book value per share.
◦ The weight of the debt can be based on the face value of the bond issue(s) outstanding multiplied by the quoted price(s) when expressed as a percentage of the face value.
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by rayancarla1 on Apr 25, 2021

vickyvicksss

  • Sr. Member
  • ****
  • Posts: 351
Reply #1 on: Apr 25, 2021
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 39% of students answer this correctly


rayancarla1

  • Member
  • Posts: 571
Reply 2 on: Apr 25, 2021
Great answer, keep it coming :)

nyrave

  • Member
  • Posts: 344
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

HIV testing reach is still limited. An estimated 40% of people with HIV (more than 14 million) remain undiagnosed and do not know their infection status.

Did you know?

About 80% of major fungal systemic infections are due to Candida albicans. Another form, Candida peritonitis, occurs most often in postoperative patients. A rare disease, Candida meningitis, may follow leukemia, kidney transplant, other immunosuppressed factors, or when suffering from Candida septicemia.

Did you know?

Intradermal injections are somewhat difficult to correctly administer because the skin layers are so thin that it is easy to accidentally punch through to the deeper subcutaneous layer.

Did you know?

Signs and symptoms that may signify an eye tumor include general blurred vision, bulging eye(s), double vision, a sensation of a foreign body in the eye(s), iris defects, limited ability to move the eyelid(s), limited ability to move the eye(s), pain or discomfort in or around the eyes or eyelids, red or pink eyes, white or cloud spots on the eye(s), colored spots on the eyelid(s), swelling around the eyes, swollen eyelid(s), and general vision loss.

Did you know?

Malaria mortality rates are falling. Increased malaria prevention and control measures have greatly improved these rates. Since 2000, malaria mortality rates have fallen globally by 60% among all age groups, and by 65% among children under age 5.

Killer Whale - Size comparison to an average human. Killer Whale - Size comparison to an average human.
Natural Capital Natural Capital
Average Chemical Composition of the Geosphere Crust Average Chemical Composition of the Geosphere Crust
How lenses correct visual problems: (A) emmetropia; (B) myopia; (C) hyperopia; (D) corrected myopia; ... How lenses correct visual problems: (A) emmetropia; (B) myopia; (C) hyperopia; (D) corrected myopia; ...
Stacking the joints. A. Correct thumb–wrist alignment for applying direct pressure. B. Incorrect ... Stacking the joints. A. Correct thumb–wrist alignment for applying direct pressure. B. Incorrect ...
Correct alignment for stacking the joints to apply thumb pressure to acupoints. Correct alignment for stacking the joints to apply thumb pressure to acupoints.
Video: Photosynthesis and Van Helmont Experiment

For a complete list of videos, visit our video library