The After-Tax Average Cost of All the Long-Term Funds Used

question 24

Multiple Choice

The after-tax average cost of all the long-term funds used by a corporation equals:

• A)economic value added
• B)return on investment
• C)return on equity
• D)weighted-average cost of capital

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Definitions:

Proceeds

The total amount of money or assets derived from a transaction or event, often used in the context of sales and financings.

Monthly Payments

Regular payments made every month towards the repayment of a loan, mortgage, or other financial obligation.

Breach Of Contract

The failure of one of the parties to a contract to do what was previously agreed upon.

Balance

The difference between the total credits and total debits in an account, or the state of having equal weight or power.