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NEW QUESTION: 1
Smith Company has no retained earnings. The company uses the CAPM to calculate the cost of equity capital. The company's capital structure consists of common stock, preferred stock, and debt. Which of the following events will reduce the company's WACC?
A. A reduction in the market risk premium.
B. An increase in expected inflation.
C. An increase in the flotation costs associated with issuing common equity.
D. An increase in the company's beta.
E. An increase in the flotation costs associated with issuing preferred stock.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
If the risk premium decreases, the required return on common equity will be reduced. All of the other answers will increase the firm's WACC.
NEW QUESTION: 2
注：この質問は、同じシナリオを提示する一連の質問の一部です。 連載の各質問には、記載されている目標を達成できる可能性のある固有の解決策が含まれています。 他の人が正しい解決策を持っていないかもしれない間、いくつかの質問セットは複数の正しい解決策を持っているかもしれません。
このセクションで質問に答えた後は、それに戻ることはできません。 その結果、これらの質問はレビュー画面に表示されません。
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これは目標を達成していますか？
A. Yes
B. No
Answer: B
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B. All of the above
C. Flooding on the entire network.
D. The aging time of MAC address entries is changed.
Answer: A
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