A. will decrease as the risk level of the firm increases. B. for a specific project is primarily dependent upon the source of the funds used for the project. C. is independent of the firm's capital structure. D. should be applied as the discount rate for any project considered by the...
This paper develops a theory of the firm's weighted average cost of capital (WACC) and the marginal tax rate with risky debt and potentially redundant depreciation and interest tax shields. The tax shields' risks, the firms borrowing interest rate and its marginal tax rate are intertwined, and...
Our empirical results, based on a sample of Russell 3000 firms over the 1998-2004 period, show that industrial (international) diversification is associated with a lower (higher) firm cost of capital. These findings also hold for firms fully financed with equity. In addition, international ...
A firm's cost of capital is 10 percent. The firm has three investments to choose among; the cash flows of each are as follows: Cash Inflows A B с $1,740 Year 1 2 3 $ 551 551 551 4 $2,533 Each investment requires a $1,500 ...
In an integrated global market, a firm's cost of capital expressed in one currency should be consistent with its cost of capital expressed in another currency. This article presents and illustrates a process for estimating consistent costs of capital in different currencies for a U.K. based mult...
The ratio of the firm’snet income to its average book value is the firm’s return on equity, which canbe greater than, equal to, or less than the firm’s cost of equity. Cost ofequity for a firm can be defined as the expected equilibrium total return inthe market on its equity shar...
awhere the local stresses and local strains were 那里局部应力和局部应变 [translate] aa firm's cost of equity capital is a positive linear function of the firm's capital structure. 公司的权益资本费用是公司的资本结构的一个正面线性函数。 [translate] ...
预售 公司的资本成本理论:债务如何影响公司的风险、价值、税率以及政府税收THEORY OF THE FIRM'S COST OF CAPITAL, A: HOW DEBT AFFECTS THE F RAO RAMESH K S ET AL 著 京东价 ￥ 降价通知 累计评价 0 促销 展开促销 配送至 --请选择-- 支持 - + 加入购物车 更多商品信息 ...
The firm’s marginal cost of capitalA. Should be the same as the firm’s rate of return on equity. B. Is unaffected by the firm’s capital structure. C. Is inversely related to the firm’s required rate of return used in capital budgeting. ...