The overall cost of capital for a retail store O is equivalent to the after-tax cost of the firm's liabilities. O should be used as the required return when analyzing a potential acquisition of a wholesale distributor. reflects the return investors require on the total assets of the firm. O remains constant even when the debt-equity ratio changes. O is unaffected by changes in corporate tax rates. 2016- 10000-00 1025 26 347700 d WHEHEH 22295 25252

The overall cost of capital for a retail store is equivalent to the after-tax cost of the firm's liabilities. should be used as the required return when analyzing a potential acquisition of a wholesale distributor. reflects the return investors require on the total assets of the firm. remains constant even when the debt-equity ratio changes. is unaffected by changes in corporate tax rates