Cost of capital is equal to required return rate on equity in case if investors are only__________?

Related Mcqs:

1. The return on assets is equal 6.7% and equity multiplier is equal to 2.5% then the return on equity will be

   A. 0.1675
   B. 0.0268
   C. 0.00373
   D. 0.092

2. Return on assets = 5.5%, Total assets $3,000 and common equity $1,050 then return on equity would be_________?

   A. $22,275
   B. 15.71%
   C. 1.93%
   D. 1.925 times

3. Return on assets = 6.7% and equity multiplier = 2.5% then return on equity will be ______________?

   A. 16.75%
   B. 2.68%
   C. 0.37%
   D. 9.20%

4. The return on assets = 5.5%, Total assets $3,000 and common equity is $1,050 then the return on equity would be _________?

   A. 22275
   B. 0.1571
   C. 0.01925
   D. 1.925 times

5. Modified rate of return and modified internal rate of return with exceed cost of capital if net present value is____________?

   A. Positive
   B. Negative
   C. Zero
   D. One

6. The modified rate of return and modified internal rate of return with exceed cost of capital if the net present value is ____________?

   A. positive
   B. negative
   C. zero
   D. one

7. The marginal income tax rate is 35% and before tax rate of return is 12.5% then the after tax rate of return is __________?

   A. 0.0613
   B. 0.0713
   C. 0.08125
   D. 0.0913

8. The marginal income tax rate is 46.8% and before tax rate of return is 15.5% then the after tax rate of return is _____________?

   A. 0.0725
   B. 0.08246
   C. 0.1025
   D. 0.0925

9. The marginal income tax rate is 28% and before tax rate of return is 14.5% then the after tax rate of return is __________?

   A. 0.0744
   B. 0.0844
   C. 0.0944
   D. 0.1044

10. Rate of return which is asked by investors is classified as_____________________?

    A. Average cost of capital
    B. Mean cost of capital
    C. Weighted cost of capital
    D. Weighted average cost of capital