A. Term structure
B. Market premium
C. Risk premium
D. Cost of debt
Related Mcqs:
- Rate on debt that increases as soon market rises is classified as________?
A. Rising bet rate
B. Floating rate debt
C. Market rate debt
D. Stable debt rate - As compared to public issues, the interest premiums on privately placed issues overtime have _____________?
A. increased
B. increased floatation rate
C. decreased
D. zero interest coupon - A firm has paid out Rs. 150,000 as dividends from its net income of Rs. 250,000. What is the retention ratio for the firm?
A. 12%
B. 25%
C. 40%
D. 60% - The interest rate on floating rate Eurobonds is paid
A. annually
B. semiannually
C. monthly
D. quarterly - An interest rate which is paid by money borrower and charged by lender is considered as_____________?
A. Annual rate
B. Periodic rate
C. Perpetuity rate of return
D. Annuity rate of return - The value of option issued to call debt is subtracted from rate of return on callable bond to calculate the rate of return on ____________?
A. contributed bonds
B. non-callable bonds
C. callable bonds
D. discounted bonds - The value of option issued to call debt is $780 and return rate on callable bond is $370 then return rate on non-callable bond is ___________?
A. 1250
B. 1150
C. 1350
D. 410 - The value of option issued to call debt is $670 and return rate on callable bond is $540 then return rate on non-callable bond is ____________?
A. 1210
B. 1010
C. 130
D. 1020 - The value of option issued to call debt is $940 and return rate on callable bond is $480 then return rate on non-callable bond is __________?
A. 460
B. 1520
C. 1420
D. 1620 - Rate of return which is required to satisfy stockholders and debt holders is classified as__________?
A. Weighted average cost of interest
B. Weighted average cost of capital
C. Weighted average salvage value
D. Mean cost of capital
