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rCost of capital is? mm Point} O a. The amount the company must pay for its plant assets 0 b. The dividends a company must
rCost of capital is? mm Point} O a. The amount the company must pay for its plant assets 0 b. The dividends a company must pay on its equity securities 0 c. The cost of the company is charged by the investment banker who handle the issuance of equity or long-term debt securities 0 d. The cost the company must incur to obtain its capital resources 3? Management knowledge of the cost of capital is useful for each of the following except? {1 Point) O a. Setting the maximum rate of return on new investments 0 b. Making capital investment decisions 0 c. Managing working capital 0 cl. Evaluating performance 38 The pre-tax cost of capital is higher than the after-tax cost of capital because: CO (1 Point) a. Principal payments on debt are deductible for tax purposes b. Dividend payments to stockholders are deductible for tax purposes O c. The cost of capital is deductible for tax purposes d. Interest expense is deductible for tax purposes39 The weighted average cost of capital approach to decision making is not directly affected by the: [6(1 Point) a. Propose mix of debt, equity and existing funds used to implement the project O b. Value of common stock O c. Current budget for expansion O d. Cost of debt outstanding
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