For Proposal 3, the incremental depreciation expense for year 3 ...

[mcmcdaniel]

For Proposal 3, the incremental depreciation expense for year 3 is ________. (See Table 11.2)
 
  A) 21,000
  B) 42,000
  C) 47,850
  D) 50,850

Question 2

Since retained earnings is a more expensive source of financing than debt and preferred stock, the weighted average cost of capital will fall once retained earnings have been exhausted.
 
  Indicate whether the statement is true or false

[GCabra]

Answer to Question 1

C

Answer to Question 2

FALSE

[mcmcdaniel]

Gracias!

[amandanbreshears]

Excellent