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nelvita1970 nelvita1970
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3 years ago
The overall cost of capital for a retail store

▸ is equivalent to the after-tax cost of the firm's liabilities.

▸ should be used as the required return when analyzing a potential acquisition of a wholesale distributor.

▸ reflects the return investors require on the total assets of the firm.

▸ remains constant even when the debt-equity ratio changes.

▸ is unaffected by changes in corporate tax rates.
Textbook 
Corporate Finance Online

Corporate Finance Online


Edition: 2nd
Authors:
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MacongMacong
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3 years ago
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nelvita1970 Author
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3 years ago
Thank you, thank you, thank you!
Ctownsend
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Yesterday
Brilliant ツ
acaruso
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2 hours ago
Correct Slight Smile TY
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