Which of the following is most important for direct marketing to be effective?

The DEF Company is planning a $64 million expansion. The expansion is to be financed by selling

$25.6 million in new debt and $38.4 million in new common stock. The before-tax required rate of return on debt is 9 percent and the required rate of return on equity is 14 percent. If the company is in the 35 percent tax bracket, what is the firm's cost of capital? A) 10.74% B) 8.92% C) 9.89% D) 11.50%

The following accounts were noted in reviewing the trial balance for Parent Co and Subsidiary Corp:

Assets under Construction Contracts Receivable Billings on Construction in Progress Earned Income on Long-Term Contracts Contracts Payable If these accounts pertain to a contract where Subsidiary Corp. is building an asset for Parent Co., which of these accounts do you expect to eliminate when producing Parent Co. consolidated financial statements? a. Assets under Construction; Billings on Construction in Progress; Earned Income on Long-Term Contracts b. Contracts Receivable; Billings on Construction in Progress; Earned Income on Long-Term Contracts c. Assets under Construction; Contracts Receivable; Billings on Construction in Progress; Earned Income on Long-Term Contracts; Contracts Payable d. Contracts Receivable; Billings on Construction in Progress; Earned Income on Long-Term Contracts; Contracts Payable