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

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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

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