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Which of the following might affect the weighted average cost of capital for a firm? I. the firm's tax rate II. the firm's interest payment
Which of the following might affect the weighted average cost of capital for a firm? I. the firm's tax rate II. the firm's interest payment II. the firm's liquidity ratio IV. the firms' depreciation rate V. the price earning ratio of the firm Multiple Choice I, II, and IV only I and Il only IIl and V only I, II, and IV only Il and IV only Pick the correct statement(s) from below. I. Automatic dividend reinvestment plans help bondholders create their own homemade dividend policies. II. Automatic dividend reinvestment plans make corporate dividend policies irrelevant to individual stockholders. II. Automatic dividend reinvestment plans grant bondholders the right to purchase company stock at a discounted price. IV. Automatic dividend reinvestment plans allow stockholders reinvest part or all of the dividends to which they are entitled. Multiple Choice Il only IV only Il and IV only III only I and III only In computing the weighted average cost of capital, Susan determines the capital structure weights using the I. market value of firm's debt II. book value of firm's equity II. book value of preferred stock IV. yield to maturity of firm's bonds Multiple Choice I and Il only I, II, III and IV IIII and IV only I, III and IV only I only Pick the correct statement(s) associated with M&M Proposition Il with no taxes. I. Financial risk determines the return on assets. II. Financial risk is determined by the debt-equity ratio. III. The cost of equity increases when the amount of leverage used by a firm rises. IV. The required return on assets is higher than the weighted average cost of capital. Multiple Choice Il and III only I and Il only Il only I and IV only I only
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