Which of the Following Statements Is CORRECT

question 71

Multiple Choice

Which of the following statements is CORRECT?

• A) a cost should be assigned to reinvested earnings due to the opportunity cost principle, which refers to the fact that the firm's stockholders would themselves expect to earn a return on earnings that were distributed rather than retained and reinvested.
• B) no cost should be assigned to reinvested earnings because the firm does not have to pay anything to raise them. they are generated as cash flows by operating assets that were raised in the past; hence, they are "free."
• C) suppose a firm has been losing money and thus is not paying taxes, and this situation is expected to persist into the foreseeable future. in this case, the firm's before-tax and after-tax costs of debt for purposes of calculating the wacc will both be equal to the interest rate on the firm's currently outstanding debt, provided that debt was issued during the past 5 years.
• D) if a firm has enough reinvested earnings to fund its capital budget for the coming year, then there is no need to estimate either a cost of equity or a wacc.
• E) the component cost of preferred stock is expressed as rp(1 σ t). this follows because preferred stock dividends are treated as fixed charges, and as such they can be deducted by the issuer for tax purposes.

Describe the various theories related to hedonism and motivation.

Associate sensory experiences with cognitive and emotional outcomes.

Distinguish between different psychological theories of motivation and their applications.

Understand the concepts of attachment and the effects of deprivation on psychological development.

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Definitions:

Cannabis Use

The act of consuming cannabis, which could be for medicinal or recreational purposes, depending on legal jurisdiction.

Harassment-free Environment

A workplace or social environment that actively prevents and addresses harassment, ensuring safety and respect for individuals regardless of their background or personal characteristics.

Open-book Management

A business strategy where a company shares financial and other operational information with all employees to engage them in decision making.

Just Cause

A legitimate or legally valid reason, often used in the context of firing or disciplining an employee.