Which of the following can be thought of as an adjustment for the risks involved with respect to the cost of a firm acquiring financial capital?
A. higher retained earnings from past profits
B. cost of financial capital paid by a firm
C. imposition of hurdle rates of interest
D. tax credits for physical capital investments
Answer:C
Which of the following can be thought of as an adjustment for the risks involved with respect to the cost of a firm acquiring financial capital?
A. higher retained earnings from past profits B. cost of financial capital paid by a firm C. imposition of hurdle rates of interest D. tax credits for physical capital investments
Explanation: 70. If a firm is producing so that the point chosen along the production possibility frontier is socially preferred, then that firm is said to have reached its