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Due to changes in regulatory requirements, the transactions costs associated with selling corporate securities increased by $1 per share. This change will
Answer a. cause the cost of capital to decrease. b. cause the cost of capital to increase. c. have no effect on the cost of capital because transactions costs are expensed immediately. d. cause the cost of capital to decrease only if investors may be billed for part of the increase in transactions costs.
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The Cardinal Electronics Company must project the sales of cellular phones for the next year (called year 2). The number of cell phones sold by Cardinal Electronics in each of the
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