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Questions and Answers
Which source of finance has the highest percentage in the company's capital structure?
Which source of finance has the highest percentage in the company's capital structure?
- Debt capital
- Preferred stock capital
- Common equity capital (correct)
What is the interest rate on the company's debt before tax?
What is the interest rate on the company's debt before tax?
- 14%
- 12%
- 10% (correct)
What is the maximum capital budget of the company?
What is the maximum capital budget of the company?
- $8,000
- $800,000
- $8,000,000 (correct)
What is the cost of preferred stocks?
What is the cost of preferred stocks?
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What is the purpose of a capital budget?
What is the purpose of a capital budget?
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