Question
True or false questions 1- Capital structure has no impact on WACC. 2- Usually cost of debt is more than cost of equity. 3- YTM
True or false questions
1- Capital structure has no impact on WACC.
2- Usually cost of debt is more than cost of equity.
3- YTM ignores capital gains and capital loss.
4- There is no optimal capital structure . Do you agree?
5- Decreasing in market interest rate will cause increasing in bond value.
6- Bond is selling at discount when coupon rate is less than market interest rate.
7- According to issuer of bond, bonds can be classified into subordinated and unsubordinated.
8- Euro bond is a type of foreign bonds.
9- Both common stock and preferred stock has the same growth rate.
10-Approximation method is more accurate than IRR in calculating YTM.
11- The main difference between the cost of common stock and the cost retained earnings is growth rate.
12- If expected EBIT is more than financial break-even point, its prefer to issuing bonds
13-Companys growth rate play an important role in calculating cost of bonds. 2
14- Market interest rate (discount rate) has no impact on the value of zero coupon rate.
15- According to Net Operating Income Approach (NOI approach) there is no optimal capital structure.
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