Use of the Marginal Cost of Capital

question 77

Multiple Choice

Use of the marginal cost of capital

• A) acknowledges that when retained earnings are used up as a source of equity, the cost of capital rises as new common stock is sold to support more growth.
• B) recognizes that the return from the last dollar of funds generated should be greater than or equal to the cost of the last dollar of funds raised.
• C) acknowledges that when retained earnings are used up as a source of equity, the cost of capital rises as new common stock is sold to support more growth and recognizes that the return from the last dollar of funds generated should be greater than or equal to the cost of the last dollar of funds raised.
• D) None of these options are correct.

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Definitions:

Jackson v. Indiana

a landmark Supreme Court case ruling that a criminal defendant deemed incompetent to stand trial cannot be indefinitely committed to a state institution.

Mentally Incompetent

A legal status referring to an individual's lack of capability to make decisions or handle affairs due to mental disabilities or disorders.

Civil Commitment Procedures

Legal processes through which individuals with severe mental health issues can be involuntarily committed to a psychiatric hospital or treatment facility for their safety and the safety of others.

Competent to Stand Trial

Competent to Stand Trial refers to a legal determination that an individual has the mental capacity to understand court proceedings and participate in their defense.