If you look at it I think it was be in bounds and you did not have
WACC is the weighted average cost of capital already borrowed/invested.
Marginal cost of capital is the cost that will be incurred if one more $ of capital is raised either by equity or by debt.
So if more capital is borrowed and has a resulting higher marginal cost, the WACC increases as well.
Answer:
The answer is A.
Explanation:
Out of all the options, only option A is the odd one out. Discount rate for determining net present value of an investment is never dependent upon the present value of the proposal's future cash flows.
Discount rate is dependent upon option B because for selecting a particular investment, alternative investment opportunities must have been considered and if the discount rate for alternative investment was better, it would have been preferred.
Also for Option C. Discount rate for risky investment will be different from the less risky.
It is also dependent upon option D because the cost of equity is always higher than the cost of debt. So it will be different.
Answer:
Business interest deduction limitation does not allow net business expenses (business interest expense less business interest income) greater than 30% of the adjustable tax income of the business.
Amounts that fall into this category can be carried for Ward to future tax years for indefinite number of times until it can be applied.
Individuals exempted from business income deduction limitation include real estate and farming businesses. For these businesses they are not automatically exempted, but must elect to be exempted.
Explanation:
