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Financial Management Entrance Tests: Practice Test 10 (Chapter 5)

Cost of Capital Multiple Choice Questions (MCQ) PDF Download - 10

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The MCQs: The cost of equity which is raised by reinvesting earnings internally must be higher than the; "Cost of Capital" App (Android, iOS) with answers: cost of new common equity, cost of initial offering, cost of preferred equity, and cost of floatation for bachelors degree online. Practice Theory of Risk & Return Quiz Questions, download Apple Book (Free Sample) to learn online certificate courses.

Cost of Capital MCQs with Answers PDF Download: Quiz 10

MCQ: 46

The cost of equity which is raised by reinvesting earnings internally must be higher than the

  1. cost of initial offering
  2. cost of new common equity
  3. cost of preferred equity
  4. cost of floatation
MCQ: 47

The dividend per share is $15 and sell it for $120 and floatation cost is $3.0 then the component cost of preferred stock will be

  1. 12.82
  2. 0.1282
  3. 0.1282
  4. 12.82
MCQ: 48

In the pure play method, a company can calculate its own cost of capital with the help of averaging an

  1. other company capital policy
  2. other company beta
  3. other company cost
  4. other division cost
MCQ: 49

The capital budgeting decisions are analyzed with the help of weighted average and for this purpose

  1. component cost is used
  2. common stock value is used
  3. cost of capital is used
  4. asset valuation is used
MCQ: 50

A formula of after-tax component cost of debt is

  1. interest rate-tax savings
  2. marginal tax-required return
  3. interest rate + tax savings
  4. borrowing cost + embedded cost

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Cost of Capital MCQs App (Android & iOS)

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