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NEW QUESTION: 1
Which of the following statements is correct?
A. If a firm has been suffering accounting losses and is expected to continue suffering such losses, and therefore its tax rate is zero. It is possible that its after-tax component cost of preferred stock as used to calculate the WACC will be less than its after-tax component cost of debt.
B. The lower a company's tax rate, the greater the advantage of using debt in terms of lowering its WACC.
C. Normally, the cost of external equity raised by issuing new common stock is above the cost of retained earnings. Moreover, the higher the growth rate is relative to the dividend yield, the more the cost of external equity will exceed the cost of retained earnings.
D. Due to the way the MCC (Marginal Cost of Capital) is constructed, the first break point in the MCC schedule must be associated with using up all available retained earnings and having to issue common stock.
E. Because we often need to make comparisons among firms that are in different income tax brackets, it is best to calculate the WACC (Weighted Average Cost of Capital) on a before-tax basis.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
Because corporations can exclude dividends for tax purposes, preferred stock often has a market return that is less than the issuing company's cost of debt. Then, if the issuer's tax rate is zero, its component cost of preferred would be less than its cost of debt.

NEW QUESTION: 2

A. Option D
B. Option C
C. Option B
D. Option A
Answer: C

NEW QUESTION: 3
When a user launches a published version of Notepad, the user receives the following error message:
"Cannot connect to the Citrix XenApp server.SSL Error: The proxy denied access to 10; STA393B6A5D1088; 9764757E39D0BEBB0BFC66E9EE146FF4 port 1494."
What could be the cause of this error message?
A. Web Interface CANNOT reach the XML broker.
B. NetScaler Gateway CANNOT reach the Secure Ticket Authority server.
C. NetScaler Gateway CANNOT reach the XenApp server.
D. Web Interface CANNOT reach the XenApp server.
Answer: B

NEW QUESTION: 4
Using the following Refund case life cycle, how do you design this case to skip the Item Return stage if the item will not be returned?

A. Add an Item Retention alternate stage and define a process for retention of item.
B. Replace the Wait step in the Item Return stage with a Change Stage step.
C. Add a condition to skip the Item Return stage when a return is not necessary.
D. Add a decision in the Item Return process to change the stage when a return is not necessary.
Answer: C