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solmaris [256]
4 years ago
12

Which of the following statements is MOST correct?A. Because the cost of debt is lower than the cost of equity, value-maximizing

firms maintain debt ratios of close to 100%.B. Corporations that are 100% equity financed will have a much lower weighted average cost of capital because the lack of debt lowers their risk of bankruptcy.C. The source of capital with the lowest after-tax cost is preferred stock, because it is a hybrid security, part debt and part equity.D. The cost of a particular source of capital is equal to the investor's required rate of return after adjusting for the effects of both flotation costs and corporate taxes.
Business
1 answer:
Mama L [17]4 years ago
5 0

Answer:

B. Corporations that are 100% equity financed will have a much lower weighted average cost of capital because the lack of debt lowers their risk of bankruptcy.

Explanation:

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What is the effective annual yield of 6% compounded semi-annually? Answer in the percent format. Round to the nearest hundredth
Studentka2010 [4]

Answer:

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Explanation:

given data

rate r = 6%

compounded semi-annually

solution

we get here effective annual yield that is express as

effective annual yield = (1+\frac{r}{n} )^n - 1   ..................1

here n is 2 for semi-annually

put here value and we get

effective annual yield = (1+\frac{0.06}{2} )^2 - 1

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