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When calculating the weighted average cost of capital (WACC) an adjustment is made for taxes because :() A. equity is risky. B. preferred stock is used. C. the interest on debt is tax deductible. 相关知识点: 试题来源: 解析 C Equity and preferred stock are not adjusted for taxes bec...
WACC can be used to calculate the enterprise value of a firm by considering the cost of goods available for sale against inventory, alongside common stock, preferred stock, bonds, and any other long-term debt on your company’s books. It is comprised of a blend of the cost of equity and...
When calculating the weighted average cost of capital (WACC) an adjustment is made for taxes because: A. equity earns higher return than debt.B. the interest on debt is tax deductible.C. equity is risky. 正确答案:B 分享到: 答案解析: Equity and preferred stock are not adjusted for taxes...
In calculating the weighted average cost of capital (WACC), which of the following statements is least likely correct()A.The cost of preferred equity capital is the preferred dividend divided by the price of preferred shares.B.The cost of debt is equal
Cost of equity is calculated using the capital asset pricing model. The CAPM calculates the value of an investment by examining the risk associated with that investment and the time value of money. This is a complex formula involving many different factors, so it is important to consult a fina...
Why should you use internal rate of return over net present value? How do you find the cost of retained earnings? What is the reason to calculate the payback period and the net present value for a business investment? What distinguishes the two? How do you calculate net worth? How do you...
Each line (A - I) of the business income report/worksheet was detailed in the previous three commentaries; including an in-depth description of the worksheet's method for calculating the cost of goods sold (COGS). The only remaining business-income-related line is Line "J" - the business ...
Net income or net profit is the amount of revenue a business has after paying its operating expenses, cost of goods, interest and taxes. Retained earnings take it a step further by also taking out the cost of dividend payouts. The two metrics are different but interconnected. ...
Consider another uneven cash flow stream: Year 0 $2,000 Year 1 $2,000 Year 2 0 Year 3 $1,500 Year 4 $2,500 Year 5 $4,000 a) What is the present (year 0) value of the cash flow stream if the opportunity cost rate is 10%? b )What is the future (year 5) v...