Question
Question 1 of 30 1.0 Points Assume the following financial information: A company is financed 70% through equity and 30% through debt The shareholders require
Question 1 of 30 1.0 Points Assume the following financial information: A company is financed 70% through equity and 30% through debt The shareholders require a return of 20% Debt providers require an interest payment of 25% before tax The tax rate is 40% What is the companys Weighted Average Cost of Capital (WACC)? A. 18% B. 19% C. 20% D. 15% E. 14% Reset Selection Question 2 of 30 1.0 Points Read the following definition: This ratio indicates the companys ability to utilize current assets to repay current liabilities Which of the following ratios are described by the definition above? A. Acid-test ratio B. Interest cover C. Total debt ratio D. Current ratio E. Turnover ratio Reset Selection Question 3 of 30 1.0 Points Which of the following is a force in Porters Five Forces Framework? A. Rivalry amongst new competitors in the market B. Treat of price skimming C. Treat of market pricing D. Threat of new entrants in the industry (p.38) E. Strengths, weaknesses, opportunities and treats Reset Selection
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