Answered step by step
Verified Expert Solution
Question
1 Approved Answer
1. (1 points) Which of the following factors is most likely to influence an organization's cost of capital? a) The number of employees a company
1. (1 points) Which of the following factors is most likely to influence an organization's cost of capital? a) The number of employees a company has b) Credit rating of the organization's securities c) The time of year a company raises capital d) The exchange on which the firm's stock is traded 2. (1 points) When estimating the cost of capital for a company using the Weighted Average Cost of Capital (WACC) which is the more difficult to calculate? a) Yield to Maturity (YTM) b) Capital Asset Pricing Model (CAPM) 3. (1 points) The tax deduction of interest paid on debt always makes debt a better way of raising capital compared to equity. a) True b) False 4. (1 points) The price a company's stock is trading at impacts its cost of capital when a company raises capital. a) True b) False 5. (1 points) A company with a beta of one can outperform its index (the market). a) True b) False
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started