Answer:
No, it is a bad idea to use only the cost of debt
Explanation:
Only using the cost of debt, is not a good idea because too much amount of borrowing could lose the confidence of the investors and it could lead to the uncertainty in the future cash flows.
Suppliers might be worried regarding the financial situation and lead to the supply disruption. Though, the debt might save the tax expenses, which could lead to the negative cash flow.
When the company does not have adequate amount of cash at hand, it could cause many disruptions of financial. WACC (Weighted Average Cost of Capital) rates need to be used as the capital costs as it weigh the used capital cost and the used debt.
The correct matching of the given scenarios are"
- Klaus' demand for orange juice- Relatively elastic
- Amanda's annual demand for coffee- Relatively elastic
- Jackson's demand for mystery novels- Relatively inelastic
- Hermy's demand for Minute Maid orange juice- Relatively inelastic
- Olivia's daily demand for Starbucks latte- Relatively inelastic
- Stephen spends a very little part of his income on soda- Relatively elastic
- Xavier's demand for his economics textbook- Relatively inelastic
<h3>What is Elasticity of Demand?</h3>
This refers to the substantial change in demand of a particular product as a result of an economic factor.
With this in mind, we can see that inelastic demand has to do with the situation where the demand does not change regardless of the price change.
Read more about elasticity of demand here:
brainly.com/question/7966430
keeping track of bills sent to customers
keep track of after sale services owed to customers