Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Directions are on page But in other words , its multiple choice, each questions could have 0,1,2,3,4 answers, so its multiple-multiple choice. Point for every
Directions are on page But in other words , its multiple choice, each questions could have 0,1,2,3,4 answers, so its multiple-multiple choice. Point for every answer that is circled correctly and point for every answer that was not circeled. If the multiple choice for one question does not match the answer leave blank and I get points for not circling the wrong ones Multiple Choice (each question can have 0, 1, 2,3 or 4 answers; 1 point for each correct answeron-answer,+1 point for a complete correct set) 1. To calculate the weighted average cost of capital (WACC), we need to know A) tax rate for shareholders B) tax rate on bondholders C) percentage weights of common equity, preferred equity, and debt D) tax rate on corporate debt 2. The cost of equity: E) can be calculated using the capital asset pricing model (CAPM) F) depends on corporate tax rates G) can be calculated using the constant-growth model H) is essentially the yield to maturity 3. The cost of debt: I) can be calculated using the capital asset pricing model (CAPM) I) depends on corporate tax rates K) can be calculated using the constant-growth model L) is essentially the yield to maturity 4. Divisional WACCs: M) should always be lower than the firmwide WACC N) should always be higher than the firmwide WACC 0) should always be equal to or near the firmwide WACC P) has no relationship with the firmwide WACC 5. The separation principle: Q) maintains that the sources and uses of capital should be decided upon separately R) dictates that the cost of equity and cost of debt are separate and distinct S) dictates that the cost of equity and cost of debt are separate but not distinct T) states that the calculations of cash flows should remain independent of financing
Directions are on page
But in other words , its multiple choice, each questions could have 0,1,2,3,4 answers, so its multiple-multiple choice. Point for every answer that is circled correctly and point for every answer that was not circeled. If the multiple choice for one question does not match the answer leave blank and I get points for not circling the wrong ones
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