The three reasons that most firms need to raise money during their early life are cash flow challenges, capital investments, and lengthy product development cycles

Target weights are either book value or market value weights based on actual historical capital structure proportions

Indicate whether the statement is true or false

The Master Company acquired a 40% interest in the Dickerson Company on January 2, 2017, for $1,000,000. During 2017, Dickerson Company paid $100,000 in dividends and reported net income of $270,000. At the end of 2017, the balance in Investment in Dickerson Company should be

A) $1,000,000. B) $1,068,000. C) $1,040,000. D) $1,108,000.