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Author Question: The cost of capital to a firm is equal to A) a risk-free rate plus an equity premium. B) a ... (Read 135 times)

sjones

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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
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  • Posts: 365
Reply #1 on: Jun 30, 2018
Answer to Question 1

A

Answer to Question 2

B


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