Chapter 14—Capital Budgeting - CPA Diary
25. For a project such as plant investment, the return that should leave the market price of the firm's stock unchanged is known as the. a. cost of capital. b. net present value. c. payback rate. d. internal rate of return. ANS: A DIF: Moderate OBJ: 14-5. 26. The pre-tax cost of capital is higher than the after-tax cost of capital because ................
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