Which of the Following Statements Is Correct

question 119

Multiple Choice

Which of the following statements is correct?

• A) The WACC measures the before-tax cost of capital.
• B) An increase in the firm's marginal corporate tax rate will decrease the weighted average cost of capital.
• C) Flotation costs can decrease the weighted average cost of capital.
• D) None of the options are correct.

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Definitions:

Manifest Needs Theory

Developed by David McClelland to show that all people have needs that motivate them in life and on the job. These three needs include power needs, affiliation needs, and achievement needs.

Hierarchy of Needs

A motivational theory in psychology proposed by Abraham Maslow, which outlines a five-tier model of human needs, from basic physiological needs to self-actualization.

Effective Climate

An environment or atmosphere that positively influences productivity and satisfaction among individuals within a group or organization.

Full Potential

The highest level of performance or achievement that a person or entity can attain.