« previous next »

Author Question: The cost of capital to a firm is equal to A) a risk-free rate plus an equity premium. B) a ... (Read 137 times)

sjones

  • Hero Member
  • *****
  • Posts: 520
on: Jun 30, 2018
The cost of capital to a firm is equal to
 A) a risk-free rate plus an equity premium.
  B) a risk-free interest rate.
  C) an equity premium charged by lenders.
  D) the Treasury bill rate minus an equity premium.

Question 2

Dividends
 A) raise after tax net income.
  B) are not tax deductible.
  C) are tax deductible.
  D) have the same tax treatment for the firm as the tax treatment of interest payments.


mcarey591

  • Sr. Member
  • ****
  • Posts: 365
Reply #1 on: Jun 30, 2018
Answer to Question 1

A

Answer to Question 2

B


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Calcitonin is a naturally occurring hormone. In women who are at least 5 years beyond menopause, it slows bone loss and increases spinal bone density.

Did you know?

Despite claims by manufacturers, the supplement known as Ginkgo biloba was shown in a study of more than 3,000 participants to be ineffective in reducing development of dementia and Alzheimer’s disease in older people.

Did you know?

Symptoms of kidney problems include a loss of appetite, back pain (which may be sudden and intense), chills, abdominal pain, fluid retention, nausea, the urge to urinate, vomiting, and fever.

Did you know?

Pope Sylvester II tried to introduce Arabic numbers into Europe between the years 999 and 1003, but their use did not catch on for a few more centuries, and Roman numerals continued to be the primary number system.

Did you know?

Alcohol acts as a diuretic. Eight ounces of water is needed to metabolize just 1 ounce of alcohol.

The fuel system should hold pressure if the system is leak free. The fuel system should hold pressure if the system is leak free.
Typical Startup Cost Categories Typical Startup Cost Categories
Chocolate May Lower the Risk of Stroke in Men Chocolate May Lower the Risk of Stroke in Men
An ice-free summer opens the Arctic for exploration An ice-free summer opens the Arctic for exploration
Foods made with fat substitutes aren’t calorie free Foods made with fat substitutes aren’t calorie free
Relative lifetime risk of schizophrenia Relative lifetime risk of schizophrenia
Video: Definition of heart rate

For a complete list of videos, visit our video library