In 2011, the fixed costs of a company were $500,000, and its variable costs equaled $150,000. In 2010, the company made an annual profit of $200,000. It has been predicted that, despite a steady growth, the company's variable costs will likely equal $300,000 by 2013. The total costs of the company in 2011 were ________.

Which of the following statements is correct?

a. The appropriate tax rate to use in the adjustment of the before-tax cost of debt to determine the after-tax cost of debt is the average tax rate because interest is deductible against the company's entire taxable income. b. For a given company, the after-tax cost of debt is generally less than both the cost of preferred equity and the cost of common equity. c. For a given company, the investment opportunity schedule is upward sloping because as a company invests more in capital projects, the returns from investing increase.

Comparisons can be virtually any length

a. true b. false