A Change in the Company's Capital Structure Will Change the Amount

question 77

True/False

A change in the company's capital structure will change the amount of taxes paid but will not change the WACC.

---

Definitions:

Carrying Costs

The total cost of holding inventory, including storage, insurance, taxes, and opportunity costs.

Cycle Counting

A method of inventory verification where a select portion of the stock held in a particular area is tallied on a predetermined day.

Inventory Records

Documentation of the quantities, locations, and statuses of products or materials that a company holds in stock.

Inventory Turnover

Cost of goods sold divided by average inventory.