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Financial Management MCQs – Practice Test 1 (Chapter 5)

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Study Cost of Capital Multiple Choice Questions (MCQs) with Answers PDF to maximize finance web learning. Download the Cost of Capital MCQs PDF e-Book, Ch. 5-1 to study Financial Management Course. Practice Weighted Average Cost of Capital MCQs, Cost of Capital Notes questions and answers PDF for finance digital engagement. Download the Cost of Capital MCQs App: Free Financial Management Learning App to study bond yield and bond risk premium, capital risk adjustment career test for finance digital education.

Free "Cost of Capital MCQs" App Download with MCQ: During the planning period, a marginal cost for raising a new debt is classified as; with answers: relevant cost, debt cost, borrowing cost, and embedded cost. Solve Binomial Approach Quiz Questions, download Google e-Book (Free Chapter) to maximize finance web learning.

Cost of Capital MCQs – Practice Test 1 PDF Download

MCQ 1: During the planning period, a marginal cost for raising a new debt is classified as:

  1. debt cost
  2. relevant cost
  3. borrowing cost
  4. embedded cost

MCQ 2: The cost of common stock is 14% and the bond risk premium is 9% then the bond yield will be:

  1. 0.0156
  2. 0.05
  3. 0.23
  4. 0.6428

MCQ 3: In weighted average cost of capital, a company can affect its capital cost through:

  1. policy of capital structure
  2. policy of dividends
  3. policy of investment
  4. all of the above

MCQ 4: A risk associated with the project and the way considered by well diversified stockholder is classified as:

  1. expected risk
  2. beta risk
  3. industry risk
  4. returning risk

MCQ 5: The cost of common stock is 13% and the bond risk premium is 5% then the bond yield would be:

  1. 18
  2. 0.026
  3. 0.08
  4. 0.18

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