Which of the following would most likely be treated as an activity in an activity-based costing system?
A) direct labor cost
B) machine processing
C) direct materials cost
D) sales revenues
B
Business
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Conciseness is as important as clarity when developing a communication
Indicate whether the statement is true or false.
Business
Cheshire Corporation is now financed 100% with equity. The cost of equity is 15%. Cheshire is considering a proposal to borrow enough money at 7% to buy back half of its common stock. It would then be financed 50% with debt and 50% with equity
Assume that this does not affect the cost of equity. Cheshire's tax rate is 40%. What is Cheshire's cost of capital without and with the stock repurchase?
Business