urng nl g Part II Multiple Choice Stet te EST Aw Book value on a depreciable a ide d A) residual value less cou B) residual value less accumulated depio C) cost less accumulated depreciation D) residual value The is the discount rate that equmes A) payback period B) average rate of return C) cost of capital D) internal rate of return sn is the item that restricts or constrains the production o of a prodat A) A limiting factor B) A scarce resource C) Machine hours D) All of the above A firm has a beta of 1.2. The market return equals 14 percent and the risk-free rate of vetum opuals 69 The estimated cost of common stock equity is A) 6 percent. B) 7.2 percent. C) 14 percent. D) 15.6 percent Johnston Company wants to double production of Product X from 1,000 units to 2,000 units The v manufacturing cost per unit is $10. The variable nonmanufacturing cost per unit is $20. There are n costs. The selling price per unit is $50. What is the incremental cost of the proposed change? A) $10,000 B) $20,000 C) $30,000 D) $60,000