The Financial Managers of the Firm Decide on Its Cost

question 49

True/False

The financial managers of the firm decide on its cost of capital for financing projects.
Managers will consistently analyze alternatives and select the optimum, but they cannot dictate the actual cost itself.

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Definitions:

Highly Educated

Refers to individuals who have received a high level of education, usually at least a university degree.

Stock

A form of security that indicates the holder has proportionate ownership in the issuing corporation.

Dividends

These are distributions of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.

Shareholders

Individuals or entities that own shares in a corporation, thus having an interest in its performance and profitability.