An outside firm selected to provide services to an organization is called a

The Employment Polygraph Protection Act has increased the number of potential employees to whom a polygraph test can be administered

Indicate whether the statement is true or false.

Spectronix Inc operates in a world of perfect capital markets, has no debt, and has a required rate of return on equity of 10%

An executive manager has suggested that borrowing money to buy back outstanding stock is a good idea because it would replace equity financing with less expensive debt financing, thus increasing the value of the firm. Assume the firm issues new debt with a required return of of 5% to repurchase 30% of the outstanding stock. What is the cost of equity at the conclusion of this transaction? A) 21.67% B) 12.14% C) 16.43% D) 45.00%