When a fiRm Has flOtation Costs Equal to 6 Percent

question 99

Multiple Choice

When a firm has flotation costs equal to 6 percent of the funding need, it should:

• A) Increase the weighted average cost of capital (WACC) to offset these expenses by multiplying the WACC by 1.06.
• B) Increase the weighted average cost of capital (WACC) to offset these expenses by dividing the WACC by (1 - .06).
• C) Add 6 percent to the weighted average cost of capital to get the discount rate for the project.
• D) Increase the initial project cost by multiplying that cost by 1.06.
• E) Increase the initial project cost by dividing that cost by (1 - .06).

Understand the concepts of vertical and horizontal gene transfer in bacteria.

Recognize the structural and functional differences between various bacterial cell types and their implications for medicine and ecology.

Understand the diversity and classification of bacteria based on cell structure and morphology.

Identify the unique characteristics of various bacterial groups.

---

Definitions:

Non-discriminating Monopolist

A monopolist that charges all consumers the same price for its product.

Marginal Revenue

The added income resulted from the transaction of an additional unit of a product or service.

Monopolist

A single seller in a market with no close substitutes for the product or service, allowing for control over prices.

Non-discriminating Monopolist

A monopolist who charges a single price for its product to all consumers, regardless of market segment differences.