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The marginal cost of capital

Risk analysis may be introduced by

The retention of earnings instead of paying dividends

Long-term assets such as plant spontaneously vary with sales.​

The retention of earnings instead of paying dividends

If two investments are not mutually exclusive, the firm can make only one of them.​

If interest rates are 9 percent, an annuity of $100 for 10 years is to be preferred to $1,000 after 10 years.​

If interest rates are 9 percent, an annuity of $100 for 10 years is to be preferred to $1,000 after 10 years.​

A stock dividend

Many bonds have a call feature, which permits the firm to retire the bonds prior to maturity.​