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ALL parts to one question. please answer all, thank you Which of the following statements is TRUE? a. You should be more uncertain about the
ALL parts to one question. please answer all, thank you
Which of the following statements is TRUE? a. You should be more uncertain about the return on large company stocks than you would about the return on small company stocks because small company stocks have less risk. b. Ceteris paribus, an increase in inflation rate will lead to a upward parallel shift of the security market line. Oe. The tighter the probability distribution of returns, the higher the risk. od Coefficient of variation is a measure of portfolio risk. A financial planner is examining the portfolios held by several of her clients. Which of he following portfolios is likely to have the smallest standard deviation? O a. A portfolio with 20 randomly selected stocks from U.S. and international markets. b. A portfolio with 10 randomly selected U.S. stocks. Oc. A portfolio with 10 randomly selected international stocks. d. A portfolio with a single US stock. Which of the following statements is TRUE? A. WACC represents the maximum return a company can earn to satisfy its investors. Ob. Among the factors that affect the weighted average cost of capital (WACC), market conditions such as interest rates and tax rates are the ones that firms cannot control. Oc a Accounts payable is a capital component when calculating the weighted average cost of capital (WACC) for use in capital budgeting Od Companies should use composite WACC as the hurdle rate for each of its projects with different risk levels to accept/reject decisions. Moby Corporation has a target capital structure of 50% common stock, 5% preferred stock, and 45% debt. Its cost of equity is 8%, the cost of preferred stock is 6%, and the pretax cost of debt is 4%. The tax rate is 35%. What is the company's WACC? O a. 9.41% Ob. 2.37% O c. 10.30% O d. 5.47% Step by Step Solution
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