Question
10. A firms _____________________reflects the average cost of the various sources of investor-supplied funds (bonds, preferred stock, and common stock) a firm uses to acquire
10. A firms _____________________reflects the average cost of the various sources of investor-supplied funds (bonds, preferred stock, and common stock) a firm uses to acquire assets.
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| a. | Weighted Average Cost of Capital (WACC) |
|
| b. | Cost of Debt |
|
| c. | Cost of Equity |
|
| d. | Cost of Preferred Stock |
11. In general, if a projects net present value (NPV) is greater than 0, the project should be ___________.
|
| a. | Rejected |
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| b. | Accepted |
|
| c. | The Manager is Indifferent |
|
| d. | Not Enough Information to Determine |
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Accounting Tools for Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
6th edition
1118096894, 978-1-11921511, 978-1118096895
