Question - Benskin Corporation's capital structure consists of $600,000 of assets and $325,000 of liabilities. The average interest rate on Benskin's debt is 10% and the stockholders desire a 15% return. What is Benskin's cost of capital? If the average interest rate on debt is 12 percent, what is the cost of capital?
What term refers to the proceeds from the sale of an asset exceeding its book value at the date of disposal? What term refers to the proceeds from the sale of an asset that are less than its book value at the date of the sale?