There Are Now Roth Versions of 401(k)plans and 403(b)plans as Well

question 14

True/False

There are now Roth versions of 401(k)plans and 403(b)plans as well as Roth IRAs.

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Definitions:

Optimal Structure

The ideal mix of debt, equity, and internal funds that minimizes the cost of capital while maximizing shareholder value.

IRR

Internal Rate of Return, a discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

Cost Of Capital

The minimum return that a company must earn on existing asset base to satisfy its creditors, owners, and other providers of capital.

Capital Structure

The mix of different forms of capital used by a firm to finance its overall operations and growth, including debt, equity, and any hybrid securities.