Central Systems,Inc

question 34

Multiple Choice

Central Systems,Inc.desires a weighted average cost of capital of 8 percent.The firm has an aftertax cost of debt of 5.4 percent and a cost of equity of 15.2 percent.What debt-equity ratio is needed for the firm to achieve its targeted weighted average cost of capital?

• A)0.38
• B)0.44
• C)1.02
• D)2.77
• E)3.63

Recognize how elasticity of supply and demand affects the outcome of a tax imposition.

Understand the administrative and compliance costs associated with taxes.

Comprehend the effects of taxes on specific markets, such as SUVs and lattes.

Recognize how taxes can be substituted by other market interventions like quotas or price controls.

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Definitions:

Cash Receipts

Money received by a business or individual, documented for accounting purposes to track income and financial transactions.

Security Service

A service offered by professionals to protect individuals, businesses, and properties from harm or theft.

Number Expressed

A specific value presented in numerical form.

Thousandths

A decimal place three places to the right of the decimal point, representing parts of a thousand.