The MM Formula for the Adjusted Cost of Capital Takes

question 64

True/False

The MM formula for the adjusted cost of capital takes into consideration only the effect of the interest tax shield on permanent debt.

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Definitions:

Disparate impact

A theory in anti-discrimination law that occurs when policies, practices, rules, or other systems that appear to be neutral result in a disproportionate impact on protected groups.

Disparate treatment

A legal doctrine under U.S. employment law that refers to intentional discrimination against individuals on the basis of race, color, religion, sex, or national origin.

Employment practices

Policies, procedures, and actions related to the management of employees within an organization, including hiring, training, promotion, and termination.

Americans with Disabilities Act

A civil rights law enacted in 1990 that prohibits discrimination against individuals with disabilities in all areas of public life.