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Author Question: Because there are no fixed financing costs, a common stock plan line in an EBIT-EPS analysis chart ... (Read 60 times)

renzo156

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on: Jul 10, 2018
Because there are no fixed financing costs, a common stock plan line in an EBIT-EPS analysis chart
  will have a less-steep slope than will a bond plan line.
 
  Indicate whether the statement is true or false

Question 2

The present value of a 25,000 perpetuity at a 14 percent discount rate is: (Round to the nearest whole dollar.)
 
  A) 178,571
  B) 285,000
  C) 350,000
  D) 219,298
Foundations of Finance ¦ Keown, Petty, Martin ¦ 9th Edition
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efwsefaw

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Reply #1 on: Jul 10, 2018
Answer to Question 1

TRUE

Answer to Question 2

A


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