Which of the Following Statements Is Correct

question 124

Multiple Choice

Which of the following statements is correct?

• A) A decrease in the firm's marginal corporate tax rate will decrease the weighted average cost of capital.
• B) Flotation costs can decrease the weighted average cost of capital.
• C) The cost of debt is based on the cost of all liabilities, including accounts payable and accruals.
• D) None of the statements are correct.

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Definitions:

Residential Real Estate

Property zoned and used for dwelling purposes, including single-family homes, apartments, and townhouses.

Inventories

Refers to the goods and materials that a business holds for the ultimate goal of resale, production, or utilization in manufacturing.

Domestic Net Worth

Domestic Net Worth calculates the total asset value of a nation's residents, companies, and government less all liabilities and debts within the country.

Trillion

A numerical value represented by 1 followed by 12 zeros, commonly used in discussions of national economies and government budgets.