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Financial Management MCQs – Practice Test 9 (Chapter 5)

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Study Cost of Capital Multiple Choice Questions (MCQs) with Answers PDF to improve finance remote communication. Download the Cost of Capital MCQs PDF e-Book, Ch. 5-9 to study Financial Management Course. Practice Weighted Average Cost of Capital MCQs, Cost of Capital Notes questions and answers PDF for finance remote examinations. Free Cost of Capital MCQs App Download: Financial Management Learning App to study capital risk adjustment, bond yield and bond risk premium career test for finance trade studies.

Learn Cost of Capital MCQs App Download with MCQ: "Historical growth rates, analysis forecasts and retention growth model are the approaches to estimate"; with answers: growth rate, present value of gain, growth gain, and discounted gain. Solve Corporate Action Life Cycle Quiz Questions, download Google e-Book (Free Chapter) to improve finance remote communication.

Cost of Capital MCQs – Practice Test 9 PDF Download

MCQ 41: The historical growth rates, analysis forecasts and retention growth model are the approaches to estimate:

  1. present value of gain
  2. growth rate
  3. growth gain
  4. discounted gain

MCQ 42: In weighted average cost of capital, the cost of capital which is risk adjusted and developed for each category of:

  1. long-term projects
  2. industry [industrial] projects
  3. divisional projects
  4. short-term projects

MCQ 43: In retention growth model, the payout ratio is subtracted from one to calculate:

  1. present value ratio
  2. future value ratio
  3. retention ratio
  4. growth ratio

MCQ 44: If the retention rate is 0.68 then the payout rate will be:

  1. 0.0147
  2. 1.68
  3. 0.32
  4. 0.68

MCQ 45: The cost of common stock is 15% and the bond yield is 10.5% then the bond risk premium will be:

  1. 0.0143
  2. 70
  3. 0.255
  4. 0.045

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