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Choose the correct answers just , WhithOut explain .. just the choose.. please help me to answer all questions: 1- The cost of () is

Choose the correct answers just , WhithOut explain .. just the choose.. please help me to answer all questions:

1- The cost of () is the return required by equity investors given the risk of the cash flows from the firm: *

A- Debt

B- Equity

2- The cost of (..) is the required return on our companys debt: *

A- Equity

B- Debt

3- We can use the individual costs of capital that we have computed to get our average cost of capital for the firm. *

A - (T)

B - (F)

4- The required return depends on the risk, not how the money is raised. *

A - (T)

B - (F)

5- The advantage of Dividend Growth Model is : (...........). *

A- Not applicable if dividends arent growing at a reasonably constant rate

B - Easy to understand and use

6- Dividend of Growth Model is :(..........). *

A- Not applicable if dividends arent growing at a reasonably constant rate

B- easy to understand and use

7- Our cost of capital provides us with an indication of how the market views the risk of our assets. *

A - (T)

B - (F)

8- There are two major methods for determining the cost of equity: *

A- Financial risk

B- Business risk

C- Dividend growth model and SML, or CAPM

9- Knowing our cost of capital can also help us determine our required return for capital budgeting projects. *

A - (T)

B - (F)

10- () is the required return on the firms assets, based on the markets perception of the risk of those assets. *

A- Business risk

C- - Financial risk

C- The Weighted Average

11- Preferred stock generally not pays a constant dividend each period. *

A - (T)

B - (F)

12- We dont need to earn at least the required return to compensate our investors for the financing they have provided. *

A- (T)

B- (F)

13. Cost of common stock is 14% and bond risk premium is 9% then bond yield will be (...............). *

A. 0.0156.

B. 0.05.

C. 0.23.

D. 0.6428

14. In weighted average cost of capital, a company can affect its capital cost through *

A. policy of capital structure

B. policy of dividends

C. policy of investment.

D. all of the above.

15. A risk associated with project and way considered by well diversified stockholder is classified as(.................). *

A. Expected risk

B. Industry risk.

C.Beta risk.

D. Returning risk.

16. Cost of common stock is 13% and bond risk premium is 5% then bond yield would be (........). *

A. 18

B. 0.18

C. 0.08.

D. 0.026

17. Variability for expected returns for projects is classified as(..........). *

A. Expected risk

B. Variable risk.

C Stand-Alone Risk.

D. Returning risk.

18. Cost of common stock is 16% and bond yield is 9% then bond risk premium would be (..).

A. 7.0

B. 0.07

C. 0.0178.

D. 0.25

19. If future return on common stock is 14% and rate on T-bonds is 5% then current market risk premium will be (..).

A. 0.19.

B. 0.09.

C. 9.

D. 19.

20. Cost of capital is equal to required return rate on equity in case if investors are only (.........).

A. Valuation manager

B. Equity dealer

C. Asset seller

D. Common stockholders

21. Bond risk premium is added in to bond yield to calculate (...........).

A. Cost of American option

B. Cost of European option.

C. Cost of preferred stock.

D. Cost of common stock

22. In weighted average capital, capital structure weights estimation does not rely on value of (..........).

A. Investors equity

B. Book value of equity.

C. Market value of equity.

D. Stock equity

23- The cost of () usually focus on the cost of long-term debt or bonds. *

A- Debt

B- Equity

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