Which One of the Following Is the Primary Determinant of a Firm's

question 96

Multiple Choice

Which one of the following is the primary determinant of a firm's cost of capital?

• A)debt-equity ratio
• B)applicable tax rate
• C)cost of equity
• D)cost of debt
• E)use of the funds

---

Definitions:

Sedatives

Substances or drugs that reduce excitement, irritability, or nervousness by inducing a calming effect on the central nervous system.

Opiates

A group of drugs derived from opium, used for pain relief, and can also induce sleep or euphoria.

Psychoactive Drugs

Drugs that act on the nervous system to alter consciousness, modify perception, and change moods.

Dopamine

Dopamine is a neurotransmitter that plays a major role in reward-motivated behavior, mood, and the regulation of movement and emotional responses.