A: minimizes financial distress costs.
B: minimizes the cost of capital.
C: maximizesthe present value of the tax shield on debt.
D: maximizes the value of the debt.
举一反三
- Company A’s capital employed and its adjusted profit is $800m and $500m respectively. Its target capital structure is 75% equity 25% debt. The cost of equity is 18% and pre-tax cost of debt is 12%. What is the value of EVA using Economic Value Added approach?
- The average of a firm's cost of equity and after tax cost of debt that is weighted based on the firm's capital structure is called the: A: reward to risk ratio B: weighted capital gains rate C: structured cost of capital D: weighted average cost of capital
- The value of a firm is maximized when the A: cost of equity is maximized. B: tax rate is zero. C: levered cost of capital is maximized. D: weighted average cost of capital is minimized.
- A supply chain needs to achieve a balance between the level of availability and the cost of inventory that A: maximizes supply chain revenues. B: minimizes supply chain costs. C: maximizes supply chain profitability. D: maximizes supply chain availability. E: all of the above
- Which one of the following terms is defined as the mixture of a firm's debt and equity financing? A: cash management B: cost analysis C: capital structure D: working capital management
内容
- 0
中国大学MOOC: The net present value of the costs of operating a machine for the next three years is $10,724 at a cost of capital of 15%. What is the equivalent annual cost of operating the machine?
- 1
When faced with a network design decision, the goal of a manager is to design a network that A: maximizes the firm's profits. B: minimizes the firm's costs. C: satisfies customer needs in terms of demand and responsiveness. D: maximizes the firm's profits while satisfying customer needs in terms of demand and responsiveness.
- 2
The net present value of the costs of operating a machine for the next three years is $10,724 at a cost of capital of 15%. What is the equivalent annual cost of operating the machine? A: $4697 B: $3575 C: $4111 D: $3109
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A company has a long-term "take or pay" commitment with its major supplier. When calculating the company’s financial ratios, a financial analyst should:（） A: ignore the arrangement. B: add the present value of the minimum future commitment to the company’s debt only. C: add the present value of the minimum future commitment to both the company’s debt and assets.
- 4
The ________ of a firm's debt can be used as the firm's current cost of debt. A: current yield B: coupon rate C: yield to maturity D: discount yield