The Cost of Capital Is a Dynamic Concept and It

question 67

True/False

The cost of capital is a dynamic concept and it is affected by economic and firm-specific factors such as business risk and financial risk.

---

Definitions:

Dependent Care Assistance Plans

Benefit plans offered by employers that allow employees to use pre-tax dollars to pay for dependent care expenses.

Married Filing Separately

A filing option for married partners that enables them to report their personal income, deductions, and exemptions separately on individual tax returns.

Modified AGI

Adjusted Gross Income with certain deductions and exclusions added back in, used to determine eligibility for certain tax benefits.

Adjusted Gross Income

An individual's total gross income minus specific deductions allowed by the IRS, used to determine tax liability.