1.) Weighted average cost of capital (WACC) measures (select one)

a. the proportion of all sources of capital into a single cost

b. the operating leverage of a company

c. the return on capital

d. how long it takes to make a return on a purchase or investment

2.) A company may elect to buyback shares to consolidate the ownership and protect against a takeover attempt.

Select one:

True

False

3.) Debt to Tangible Net Worth (TNW) is another leverage measurement which

a. evaluates a company's overall debt to net worth, while omitting goodwill, intellectual property and other intangible assets

b. evaluates a company's overall debt position including all of the company's assets

4.) A company who chooses not to pay a dividend likely has the following characteristics except for (select one):

a. high growth

b. unstable cash flow

c. ability to generate outsized returns

d. slow growth

5.) If a company is involved in a lawsuit with a vendor, this is considered a geopolitical risk.

Select one:

True

False