MCQ. Method uses for an estimation of cost of D. 0.

15%
equity is classified as A
A. market cash flow
B. future cash flow method MCQ. In weighted average capital, capital structure
C. discounted cash flow method weights estimation does not rely on value of
D. present cash flow method A. investor's equity
c B. market value of equity
MCQ. An attempt to make correction by adjusting C. book value of equity
historical beta to make it closer to an average beta is D. stock equity
classified as c
A. adjusted stock
B. adjusted beta MCQ. Interest rates, tax rates and market risk
C. adjusted coefficient premium are factors which an/a
D. adjusted risk A. industry cannot control
b B. industry cannot control
MCQ. Method in which company finds other C. firm must control
companies considered in same line of business to D. firm cannot control
evaluate divisions is classified as d
A. pure play method
B. same play method MCQ. For each component of capital, a required rate
C. division line method of return is considered as
D. single product method A. component cost
a B. evaluating cost
MCQ. Bond risk premium is added in to bond yield to C. asset cost
calculate the D. asset depreciation value
A. cost of American option a
B. cost of European option
C. cost of common stock MCQ. If payout ratio is 0.45 then retention ratio will
D. cost of preferred stock be
c A. 0.55
MCQ. Stock selling price is $45, an expected B. 1.45
dividend is $10 and an expected growth rate is 8% C. 1.82
then cost of common stock would be D. 0.45
A. $55 A
B. $58
C. $53 MCQ. Stock selling price is $35, expected dividend is
D. 30.22% $5 and expected growth rate is 8% then cost of
D common stock would be
MCQ. A type of beta which incorporates about A. $40
company such as changes in capital structure is B. 22.29%
classified as C. 0.1428
A. industry beta D. $80
B. market beta B
C. subtracted beta
D. fundamental beta MCQ. Retention ratio is 0.55 and return on equity is
d 12.5% then growth retention model would be
A. 11.95%
MCQ. Dividend per share is $18 and sell it for $122 B. 6.88%
and floatation cost is $4 then component cost of C. 13.05%
preferred stock will be D. 22.72%
A. 15.25% B
B. 0.1525 times
C. $15.25
MCQ. Preferred dividend is divided by preferred
stock price multiply by (1-floatation cost) is used to
calculate
A. transaction cost of preferred stock
B. financing of preferred stock
C. weighted cost of capital
D. component cost of preferred stock
d