1. The amount of estimated long-term investments in referred to as the:

Capital budget

Financial investment budget

Working capital budget

Research and development budget

Portfolio budget

2. Costs of capital are:

Opportunity costs of funds

Required rates of returns

Discount rates

Cost of equity and cost of debt

All of the above

3. Costs of equity should reflect:

Business risk

Operating risk

Financial risk

Systematic risk

All of the above

4. Costs of equity for publicly traded-firms can ALWAYS be estimated using:

The dividend discount model

The Capital Asset Pricing Model

Unlevered beta adjusted approach

The nonconstant growth model

All of the above

5. Adjusting costs of equity for privately held form involve:

Levered beta

Illiquidity discount

Unsystematic risk

All of the above

None of the above