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NEW QUESTION: 1
An entity has made the decision to finance next year's capital projects through debt rather than additional equity. The benchmark cost of capital for these projects should be the:
A. Weighted-average cost of capital.
B. Before-tax cost of new-debt financing.
C. After-tax cost of new-debt financing.
D. Cost of equity financing.
Answer: A
Explanation:
A weighted average of the costs of all financing sources should be used, with the weights determined by the usual financing proportions. The terms of any financing raised at the time of initiating a particular project do not represent the cost of capital for the entity.
When an entity achieves its optimal capital structure, the weighted-average cost of capital is minimized. The cost of capital is a composite, or weighted average, of all financing sources in their usual proportions. The cost of capital should also be calculated on an aftertax basis.
NEW QUESTION: 2
A. Option E
B. Option A
C. Option B
D. Option D
E. Option C
Answer: E
NEW QUESTION: 3
The disks on Server1 are configured as shown in the following table.
Windows Server 2016 is installed in C:\Windows.
On which two volumes can you enable data deduplication? Each correct answer presents a complete solution.
A. E:
B. F:
C. D:
D. C:
E. G:
Answer: B,C
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