What does the weighted-average cost of capital provide to a business?

Select an answer:

• a way to compute the cost of a project a company undertakes

• a way to evaluate the attractiveness of various projects

• a way to evaluate the risk in various types of capital financing

• a way to determine the costs of various types of financing

Of the various common ratios, which ratio is a measure of a company's efficiency?

Select an answer:

• Return on Equity

• Asset Turnover

• Return on Sales

• Current Ratio

ABC Corp. is expanding and seeking financing. In what financing mix will lenders expect a higher return?

Select an answer:

• 90 percent debt and 10 percent equity

• 10 percent debt and 90 percent equity

• 50 percent debt and 50 percent equity