For firms competing in a world characterized by oligopolistic competition, strategic motives can be subdivided into proactive and defensive investments

Maintaining equipment in the reprographics center is an effective means of helping control the costs of the operation

Indicate whether the statement is true or false.

The Auto Group has 1,200 bonds outstanding that are selling for $980 each. The company also has 7,500 shares of preferred stock at a market price of $40 each. The common stock is priced at $32 a share and there are 32,000 shares outstanding

What is the weight of the preferred stock as it relates to the firm's weighted average cost of capital? A) 10 percent B) 12 percent C) 14 percent D) 16 percent E) 18 percent