Ünite Sınavı Soruları

The marginal cost of capital (MCC) is the composite cost of the last dollar of new capital raised.

Which one of the following is a ratio measuring the profitability on equity capital and it is the division of the net income by the total common equity?

1. They are issued without a maturity.
2. The stockholder receives floating dividends that are deductible.
3. In some ways, they resemble to bonds, in others to common stocks.
4. Preferred dividends are paid out before the dividends to common stockholders.

Which of the above are the characteristics of preferred stocks?

XLM Corp. has a bond issue outstanding for which the yield-to-maturity is 8.45%. Analysts estimate a risk premium of 3.15% for the company's stock. What is the expected cost of equity of XLM according to the bond-yield-plus-risk-premium approach?

BB Corp. borrows $50,000 as a bank loan at an annual interest rate of 5%. The company pays 20% corporate tax rate. What is the after-tax rate of borrowing for BB Corp.?

Which one of the following provides a practical but highly subjective solution to the estimation of the cost of equity?

Which of the following equations is used to adjust the cost of equity to flotation costs?

ABC Corp. has a bond issue outstanding for which the yield-to-maturity is 10%. Analysts estimate a risk premium of 4% for the company’s stock. ABC's beta is 1.5. What is the expected cost of equity of ABC Corp.?

Cost of capital depends on the following factors except for ...........

... is the return a company requires to decide if an investment meets capital return requirements.

Which one of the following completes the sentence?

What is the average cost of capital mix of debt and equity in financing decisions?

All of the following is a component of WACC, except...

I. Dept

II. Equity

III. Goods

Which of above is/are included in cost of the capital mix?

In which of the following is the interest rate floating and not fixed?

What is the formula above used to calculate? 

... is an average value of the interest rate which is calculated from estimates submitted by the leading global banks on a daily basis.

Which one of the following completes the sentence?

What is the weighted average cost of capital?

XYZ Corp. borrows $50,000 as a bank loan at an annual interest rate of %8. The company pays 25% corporate tax rate. What is the after-tax rate of borrowing for XYZ Corp.?

What is it called if the interest rate is floating and not fixed in bond issues?