Which of the Following Steps Is Not Necessary for Calculating

question 9

Multiple Choice

Which of the following steps is not necessary for calculating the marginal cost of capital schedule?

• A)Determine each point at which a break in the marginal cost of capital schedule occurs.
• B)Make a list of all the break points.
• C)Determine the cost of capital for each component in the intervals between the breaks.
• D)Estimate the change in the cost of capital within each interval.
• E)Calculate the weighted averages of these component costs to obtain the WACCs in each interval.

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Definitions:

Responsible

Having an obligation to do something, or having control over or care for someone, as part of one's job or role.

Waiver

The voluntary relinquishment or surrender of a right, claim, or privilege.

Hang-gliding

A recreational activity or sport where a person flies a light, non-motorized aircraft which is launched by leaping from a height.

Responsible

Being accountable or answerable for something within one’s power, control, or management.