Reading 45: Cost of Capital - LOS d ～Q1-2 capital, white, style, black, class

mayanfang1

Q1. The marginal cost of capital is:

A)   tied solely to the specific source of financing.

B)   equal to the firm's weighted cost of funds.

C)   the cost of the last dollar raised by the firm.

Q2. Enamel Manufacturing (EM) is considering investing in a new vehicle. EM finances new projects using retained earnings and bank loans. This new vehicle is expected to have the same level of risk as the typical investment made by EM. Which one of the following should the firm use in making its decision?

A)   Cost of retained earnings.

B)   Marginal cost of capital.

C)   After-tax cost of debt.

luckye31

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fanxukaka

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maggie78

ca

guoxianglong

qq

captone

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tangfaxi

谢谢

xwsh0325

d

seraphiris0116

thanks

echopapa

thx