Smile Industries capital structure consists of $1,000,000 of debt at 6 percent interest and 1,500,000 of stockholders equity at 2 percent. The overall cost of capital is
a. 2.4%
b. 4.8%
c. .8%
d. 9.8%
D
Business
You might also like to view...
In considering whether or not to do a certain action based on ethical reasoning, a manager asks herself: "If I act in this way, would my family approve of my actions?" Which of the following ethical principles is she applying?
A. The ends-means ethic B. The intuition ethic C. The organization ethic D. The disclosure rule
Business
Increased use of discounts, rebates, and coupons erodes brand equity by lowering the
consumer's perception of value for the brand. Indicate whether the statement is true or false
Business