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Financial Management Admission Tests: Practice Test 8 (Chapter 5)

Cost of Capital Notes Questions & Answers PDF Download - 8

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The Cost of Capital Notes Questions and Answers PDF (Cost of Capital Quiz Answers PDF e-Book) download Ch. 5-8 to study Financial Management Course. Solve Cost of Capital for Risk Adjustment MCQs, Cost of Capital quiz questions and answers PDF to learn online classes courses. The Financial Management Notes App Download: Free Cost of Capital App to study weighted average cost of capital, capital risk adjustment career test for business admin degree online.

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Cost of Capital Test Questions and Answers PDF Download: MCQ 8

MCQ: 36

In weighted average cost of capital, the capital components are the funds that are usually offered by

  1. stock market
  2. investors
  3. capitalist
  4. exchange index
MCQ: 37

The cost which is used to calculate weighted average cost of capital is classified as

  1. weighted cost of capital
  2. component cost of preferred stock
  3. transaction cost of preferred stock
  4. financing of preferred stock
MCQ: 38

The special situation in which large projects are financed by with and securities claims on project's cash flow is classified as

  1. claimed securities
  2. project financing
  3. stock financing
  4. interest cost
MCQ: 39

The type of cost which is used to raise common equity by reinvesting internal earnings is classified as

  1. cost of mortgage
  2. cost of common equity
  3. cost of stocks
  4. cost of reserve assets
MCQ: 40

If the future return on common stock is 19% and the rate on T-bonds is 11% then the current market risk premium will be

  1. 30
  2. 0.3
  3. 0.08
  4. 8

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