Poor Capital Structure Decisions Can Result in a High Cost

question 7

True/False

Poor capital structure decisions can result in a high cost of capital, thereby making some unacceptable investments acceptable.

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Definitions:

Additional Output

The extra amount of production generated as a result of increasing inputs or improving efficiency.

Productivity

A measure of the efficiency of production, often expressed as the ratio of outputs to inputs in a production process.

Per Unit

A measurement specific to one unit of a good or service, indicating cost, price, or quantity related to a single unit.

Output

The total amount of goods or services produced by a company or country.