Which Statement Regarding Cost of Capital Is True

question 3

Multiple Choice

Which statement regarding cost of capital is true?

• A)If a company assigns the same cost of capital to all of its projects regardless of each project's risk, then the company is likely to reject some safe projects that it should accept and to accept some risky projects that it should reject.
• B)Because of the risk of bankruptcy, the cost of debt is always higher than the cost of equity capital.
• C)Because no flotation costs are required to obtain capital as retained earnings, the cost of retained earnings is generally lower than the after-tax cost of debt.
• D)Higher flotation costs tend to reduce the cost of equity capital.

Recognize the contributions and perspectives of African American scholars and leaders.

Grasp the evolution of civil rights and affirmative action policies by the judiciary.

Identify groundbreaking achievements by African Americans in various fields.

Recognize patterns of racial discrimination and segregation in American society.

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Definitions:

Contemporary Managers

Modern-day leaders who are responsible for planning, directing, and overseeing operations within an organization.

Henri Fayol

A French mining engineer and management theorist known for developing a general theory of business administration and for his 14 Principles of Management.

Mary Parker Follett

A pioneering theorist in the field of organizational behavior and management, who emphasized the importance of democratic leadership and people-centric management practices.

Classical Theorists

Scholars and thinkers who have contributed to the foundation of classical theories in various fields, focusing on formal structures and systems.