Identify (by code letter)each of the following characteristics as being an advantage of (A),a disadvantage of (D),or not applicable to (N)the corporate form of business.
Definitions:
Debt-equity Ratio
A metric that evaluates the financial leverage of a company, determined by dividing the total amount of its liabilities by its shareholder equity.
Weighted Average Cost
A financial metric that calculates the average price of various sources of capital (debt, equity, etc.), weighted by their respective use in the financing mix of a company.
Cost of Equity
The return a company requires to decide if an investment meets capital return requirements, often calculated using models like the Capital Asset Pricing Model (CAPM).
After-tax Cost
The expense of an action or transaction after considering the impact of taxes.
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