Which of the Following Statements Is CORRECT

question 78

Multiple Choice

Which of the following statements is CORRECT?

• A) Since the costs of internal and external equity are related,an increase in the flotation cost required to sell a new issue of stock will increase the cost of retained earnings.
• B) Since its stockholders are not directly responsible for paying a corporation's income taxes,corporations should focus on before-tax cash flows when calculating the WACC.
• C) An increase in a firm's tax rate will increase the component cost of debt,provided the YTM on the firm's bonds is not affected by the change in the tax rate.
• D) When the WACC is calculated,it should reflect the costs of new common stock,retained earnings,preferred stock,long-term debt,short-term bank loans if the firm normally finances with bank debt,and accounts payable if the firm normally has accounts payable on its balance sheet.
• E) If a firm has been suffering accounting losses that are expected to continue into the foreseeable future,and therefore its tax rate is zero,then it is possible for the after-tax cost of preferred stock to be less than the after-tax cost of debt.

Explain the concept of assertiveness and its importance in personal and professional life.

Understand the characteristics and purposes of formal and informal groups in organizations.

Identify the stages of group development and the features of each stage.

Recognize the impact of group dynamics on individual behavior and group performance.

---

Definitions:

Zero Data

Refers to a state or condition where no relevant or actionable data is available or present.

Data Transfer

The process of moving or copying data from one location to another, either within the same device or across different ones.

Data Compare

a process or operation in computing and programming that involves comparing two sets of data to identify similarities, differences, or specific conditions.

Output Instructions

Commands in a programming language that control the output actions of a device or system.