The overall cost of capital for a retail store: A) is equivalent to t

The overall cost of capital for a retail store:

A) is equivalent to the after-tax cost of the firm’s liabilities.
B) should be used as the required return when analyzing a potential acquisition of a wholesale distributor.
C) reflects the return investors require on the total assets of the firm.
D) remains constant even when the debt-equity ratio changes.
E) is unaffected by changes in corporate tax rates.

ANSWER

C