According to the Graph of WACC for Union Pacific, the Following

question 32

Multiple Choice

According to the graph of WACC for Union Pacific, the following is (are) true:
I. cost of equity is an increasing function of the debt-equity ratio.
II. cost of debt is an increasing function of the debt-equity ratio.
III. weighted average cost of capital (WACC) is a decreasing function of the debt-equity ratio.

• A) I only
• B) I and II only
• C) III only
• D) I, II and III

Understand the role and rights of a third-party beneficiary in contract law.

Comprehend the legal outcomes of multiple assignments of the same right.

Identify and differentiate between intended, incidental, and donee beneficiaries.

Grasp legal principles concerning notice of assignment and its implications.

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Definitions:

Internal Rate of Return

A metric used in financial analysis to estimate the profitability of potential investments.

Time Value of Money

The concept that money available today is worth more than the same amount in the future due to its potential earning capacity.

Capital Investment Project

A project undertaken by a business to acquire or upgrade physical assets such as property, industrial buildings, or equipment to create future benefits.

Break-Even Time

The period it takes for a business or project to generate enough revenue to cover its initial investment and start making a profit.