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C. The component cost of retained earnings equals the required rate of return on new stock.
D. A firm can shift its retained earnings breakpoint by changing the dividend policy.
Answer: D
Explanation:
Explanation/Reference:
Explanation:
The firm can shift the break point of the MCC schedule by changing its payout ratio through the dividend policy. Remember that the dividend payout ratio is in the numerator of the calculation that dictates the breakpoint between lower cost internally generated equity (retained earnings) and higher cost externally generated equity (common stock).
The other choices are false. New common equity is not by definition dilutive. However, if the firm does not earn the cost of new common equity on the portion of the investment that is financed with the new issue, the firm's earnings per share will fall. The MCC is the cost of the last dollar raised by the company and assumes constant risk across projects. The component cost of retained earnings equals the required rate of return on existing stock.
NEW QUESTION: 4
You have a Windows Virtual Desktop host pool.
You need to install Microsoft Antimalware for Azure on the session hosts.
What should you do?
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B. Sign in to each session host and install a Windows feature.
C. Add an extension to each session host.
D. From a Group Policy Object (GPO), enable Windows 10 security features.
Answer: C
Explanation:
Reference:
https://docs.microsoft.com/en-us/azure/security/fundamentals/antimalware
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