Different Divisions with Differing Lines of Business Use Different Costs

question 42

Multiple Choice

Different divisions with differing lines of business use different costs of capital because their cost of ________ could be different.

• A)debt
• B)equity
• C)capital
• D)assets
• E)common stock capital

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Definitions:

Extra Paychecks

Additional salary payments beyond the regular payment schedule, often as bonuses or for special occasions.

Relies

The act of depending on or trusting in something or someone for support or help.

Bonus Pay

A pay plan that rewards employees for recent performance rather than historical performance.

Extrinsic Reward

A reward or incentive provided by an external source, such as money, grades, or recognition, to motivate behavior or performance.