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Answer 1-4 please 1 of 10 The Cost of Capital: Introduction common equity to raise capital to invest in capital busgeting projects Capital is a

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1 of 10 The Cost of Capital: Introduction common equity to raise capital to invest in capital busgeting projects Capital is a necessary factor of production, and lke any other factor, it has a cost. This cost is equal to the Seec O securities to the fim Companies -red return on the applicable security. The rates of return that investors reaire on bonds, preferred stocks, and common equity represent me costs of those estimate the required returns on their securities, caelculate a weighted average of the costs of their different types of capital, and use this average cost for capital budgeting shareholder value. To do this, companies invest in projects that earn -Select their cost of capital, So, the cost of capital is rate when caiculating the weighted average cost ceapital (WACC, our concern is with captal that must be provided by (Select -terest-bearing debt, 0 and accruals, which arise spontaneously from operations when capital budgeting projects are undertaken, are not included as part of total Invested Which of the following would be included in the calouiation of total invested capital? Choose the response that is most correct a. Notes payable b. Taxes payable 10. earnings a and e would be included in the calculation of total invested capital. e. None of the above would be included in the calculation of total invested capital 1 of 10 The Cost of Capital: Introduction common equity to raise capital to invest in capital busgeting projects Capital is a necessary factor of production, and lke any other factor, it has a cost. This cost is equal to the Seec O securities to the fim Companies -red return on the applicable security. The rates of return that investors reaire on bonds, preferred stocks, and common equity represent me costs of those estimate the required returns on their securities, caelculate a weighted average of the costs of their different types of capital, and use this average cost for capital budgeting shareholder value. To do this, companies invest in projects that earn -Select their cost of capital, So, the cost of capital is rate when caiculating the weighted average cost ceapital (WACC, our concern is with captal that must be provided by (Select -terest-bearing debt, 0 and accruals, which arise spontaneously from operations when capital budgeting projects are undertaken, are not included as part of total Invested Which of the following would be included in the calouiation of total invested capital? Choose the response that is most correct a. Notes payable b. Taxes payable 10. earnings a and e would be included in the calculation of total invested capital. e. None of the above would be included in the calculation of total invested capital

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