In Calculating the Cost of Capital for an Average Firm,which

question 84

Multiple Choice

In calculating the cost of capital for an average firm,which of the following statements is true?

• A)The cost of a firm's bonds is greater than the cost of its ordinary shares.
• B)The cost of a firm's preference shares is greater than the cost of its ordinary shares.
• C)The cost of a firm's retained earnings is less than the cost of its bonds.
• D)The cost of a firm's ordinary shares is greater than the cost of its bonds.

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Definitions:

Construal

The way an individual makes sense of the world around him.

Humanist

A person or an approach that emphasizes the value and agency of human beings, individually and collectively.

Manifest Content

In psychoanalytic theory, the apparent, remembered content of a dream or thought, as opposed to its hidden or symbolic meaning.

Dreams

Sequences of thoughts, images, and sensations occurring in a person's mind during sleep.