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Which of the following is true of a break point on a firm's marginal cost of capital ( MCC ) schedule? a . A break
Which of the following is true of a break point on a firm's marginal cost of capital MCC schedule?
a
A break point denotes the cost of obtaining an additional dollar of new capital that is required to meet the firm's capital budgeting needs.
b
At the break point, the marginal cost of raising new capital equals the marginal revenues generated from investing the new capital.
c
A break point BP is defined as the weighted average cost of capital WACC of the last dollar of new capital that a firm raises.
d
A break point BP is defined as the last dollar of new total capital that can be raised before an increase in the firm's weighted average cost of capital WACC occurs.
e
A break point shows the point at which the yield to maturity YTM on debt is equal to the firm's required rate of return.
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