Which statement describes the rate of return expected when lending funds to a firm as compared with the rate when lending to a reputable state?

a. It must be lower because a lender to a firm cannot expect to not to be exposed to any risk.

b. It must be higher because a lender to a state cannot expect not to be exposed to any risk.

c. It must be lower because the term lengths will generally be shorter.

d. It must be higher because a lender to a firm cannot expect not to be exposed to any risk.

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What term is used for the weighted cost of equity and debt in proportion to their contribution to the total capital of the firm?

a. Weighted and capitalised costs

b. Weighted average cost of capital

c. Weighted costs of average capital

d. Weighted amalgamated costs of capital

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Which of the following are the main forms of capital available to firms?

a. Equity and debt

b. Convertible bonds and equity

c. Non-convertible bonds and debt

d. Equity and foreign currency