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Author Archives: Anonymous

If the marginal cost of capital rises, that suggests the cos…

If the marginal cost of capital rises, that suggests the cost of some component of the firm’s capital structure has risen.

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The owners of a corporation elect the board of directors.​

The owners of a corporation elect the board of directors.​

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Retained earnings are more expensive than issuing new shares…

Retained earnings are more expensive than issuing new shares because of flotation costs.

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The highest credit rating is triple A.​

The highest credit rating is triple A.​

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The net present value assumes that cash inflows are reinvest…

The net present value assumes that cash inflows are reinvested at the net present value.​

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Increasing the speed with which receivables are collected ha…

Increasing the speed with which receivables are collected has no impact on the cash budget.​

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The net present value assumes that cash inflows are reinvest…

The net present value assumes that cash inflows are reinvested at the net present value.​

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If a stock is selling for $90 and is split 3 for 1, the new…

If a stock is selling for $90 and is split 3 for 1, the new price of the stock should be $30.​

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If a company enters bankruptcy court, bondholders should rea…

If a company enters bankruptcy court, bondholders should realize

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Regression analysis assumes that equity as a percent of tota…

Regression analysis assumes that equity as a percent of total assets is fixed.​

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