What are sunk costs?
What will be an ideal response?
Answer: Sunk costs are payments already made or that will be made that are independent of the project under discussion. These are costs for which the firm is already liable.
Business
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An unconditional written promise to pay a sum of money to another is a draft.
a. true b. false
Business
According to Modigliani and Miller's Proposition II without taxes:
A. the capital structure decision has no effect on the cost of equity. B. investment and the capital structure decisions are interdependent. C. the cost of equity increases as the use of debt in the capital structure increases.
Business