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matrenka [14]
4 years ago
7

Suppose you are the president of a small, publicly-traded corporation. Since you believe that your firm's stock price is tempora

rily depressed, all additional capital funds required during the current year will be raised using debt. In this case, the appropriate marginal cost of capital for use in capital budgeting during the current year is the after-tax cost of debt.True or False? Explain?
Social Studies
1 answer:
den301095 [7]4 years ago
7 0

Answer:

The correct answer is  False.

Explanation:

Marginal cost or cost of production is the increase in the overall cost of production needed to be added to produce one additional item.

In the case given actually the marginal cost to be used in the capital budgeting for the current year will not only be the after-tax cost of debt but also the whole amount of the debt itself.

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The type of money system that he designed and started was the coinage system or the use of the coin in any system of transaction. Thus, the correct answer is COIN.

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