moneybaggzay123
08.07.2019 •
Business
Which of the following statements is correct? a. suppose some of a publicly-traded firm's stockholders are not diversified; they hold only the one firm's stock. in this case, the capm approach will result in an estimated cost of equity that is too low in the sense that if it is used in capital budgeting, projects will be accepted that will reduce the firm's intrinsic value. b. the cost of capital used to evaluate a project should be the cost of the specific type of financing used to fund that project, i.e., it is the after-tax cost of debt if debt is to be used to finance the project or the cost of equity if the project will be financed with equity. c. the bond-yield-plus-risk-premium approach is the most sophisticated and objective method for estimating a firm's cost of equity capital. d. the cost of equity is generally harder to measure than the cost of debt because there is no stated, contractual cost number on which to base the cost of equity. e. the after-tax cost of debt that should be used as the component cost when calculating the wacc is the average after-tax cost of all the firm's outstanding debt.
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Ответ:
answer-
a. the total cost of a taxi ride includes an initial charge of approximately $3.30
solution-
in the graph,
x axis represents the distance traveled and
y axis represents the total fare
the best fit line intersects the y axis approximately at 3.30 or y-intercept is 3.30. at x=0, i.e when the taxi is still, the value of y or the cost of the fare is 3.30. that means $3.30 is the fixed charge which will be levied along with the other fare.
the slope of the line represent the cost per mile. as the best fit line is straight line, so the price per mile is constant.