AÖF Soru Bankası
FİN208U

Busıness Fınance II (ENG)

Ünite Sınavı Soruları

  • 20 soru
  • Soru metinleri açık; şıklar ve cevap anahtarı uygulamada
  1. 1

    NEO Corp. has the following optimal capital structure:

    • Long-term Debt 40%
    • Preferred Stocks 30%
    • Common Equity 60%

    The interest rate on the company’s long-term borrowings is 10%. Preferred stockholders require 20% return on their investments and common shareholders are paid 12% on equity capital. The company has a tax rate of 35%. What is the WACC for NEO Corp.?

  2. 2

    Which of the following equations is used to calculate the cost of the preferred stock?

  3. 3

    Which of the following rate is the most used by banks borrowing from international bank loans at floating rates?

  4. 4

    LDP Corp. has the following optimal capital structure: Long-term Debt 30%; Preferred Stocks 20%; Common Equity 50%. The interest rate on the company’s long-term borrowings is 8%. Preferred stockholders require 12% return on their investments and common shareholders are paid 15% on equity capital. The company has a tax rate of 35%.

    What is the WACC for LDP Corp.?

  6. 5

    What is the average cost of the mix of debt and equity?

  7. 6

    If a company borrows 250.000 tl as a bank loan at an annual interest rate % 8. The company pays % 25 corporate tax rate. What will be the after-tax rate of borrowing for this company.

  8. 7
    1. It is a benchmark rate that represents the interest rate at which banks offer to lend funds to one another in the international interbank market for short-term loans.
    2. It is an average value of the interest- rate which is calculated from estimates submitted by the leading global banks on a daily basis.
    3. It is an index that is used to determine the interest payments for each period if the rate is floating.
    4. It is an additional risk premium payment that banks make when they borrow from the international banks.

    Which of the above statements about LIBOR is correct?

  9. 8

    The return of the market in excess of the risk-free rate is referred to as .............

  11. 9

    ABC Corp. distributes 60% of its net income as dividends. The firm’s ROE is 16% and last year stockholders received $1.60 dividends per share. Currently the stock sells at $34.60.

    What is the cost of equity of ABC Corp.?

  12. 10

    Which one of the following estimates the required return of a stock investment in relation to its systematic risk which cannot be diversified away in a portfolio context?

  13. 11

    A & B Corp. has the following optimal capital structure:

    • Long-term Debt 20%
    • Preferred Stocks 10%
    • Common Equity 40%

    The interest rate on the company’s long-term borrowings is 7%. Preferred stockholders require 13% return on their investments and common shareholders are paid 15% on equity capital. The company has a tax rate of 40%. What is the WACC for A & B Corp.?

  14. 12

    ABC Corp. recently issued preferred stocks for raising additional $100,000 of equity funds. Investors bought each share paying a price of $80. The preferred dividends are $15 per share. What is the return of the preferred stockholders?

  16. 13

    ANT Corp. issues bonds to borrow $500,000 required for capital investments. The bonds have a face value of $1,000, pay 5% annual coupons and mature in 8 years. The bonds are sold at par; however, the company incurs flotation (commissions and fees) costs of 4% on the bond issue. ANT's tax rate is 35%.

    What is the after-tax cost of the bond issue?

  17. 14

    XYZ Corp. borrows $100,000 as a bank loan at an annual interest rate of 5%. The company pays 30% corporate tax rate. What is the after-tax rate of borrowing for XYZ Corp.?

  18. 15

    Which of the following is the measure of sytematic risk of a stock?

  19. 16
    1. The WACC estimation should be based on the market values of the capital components.
    2. The weights of the capital components should not be computed on book values.
    3. In the evaluation of the capital budgeting projects, the WACC of the firm should be used as a decision criterion.

    Which of the statements above is/are true about weighted average cost of capital?

  21. 17

    "A business can raise equity capital either through  ............ issue or ............. issue"

    Which of the following pairs would best fill the blanks above?

  22. 18

    "In bond issues if the interest rate is floating and not fixed, then it is called as .......... bond."

    Which of the following would best fill the blank above?

  23. 19

    What does k denote in the DCF equation above?

  24. 20

    Which of the following is not true for preferred stocks?

Şıkları ve doğru cevapları görBusıness Fınance II (ENG) dersinin tüm sınavları, cevap anahtarları, süreli mod ve yanlış analizi uygulamada.Uygulamada aç