A. Component cost is used
B. Common stock value is used
C. Cost of capital is used
D. Asset valuation is used
Related Mcqs:
- In weighted average cost of capital, capital components are funds that usually offer by____________?
A. Stock market
B. Investors
C. Capitalist
D. Exchange index - In weighted average capital, capital structure weights estimation does not rely on value of__________?
A. Investors equity
B. Market value of equity
C. Book value of equity
D. Stock equity - In weighted average cost of capital, rising in interest rate leads to_________________?
A. Increase in cost of debt
B. Increase capital structure
C. Decrease in cost of debt
D. Decrease capital structure - In capital budgeting, two projects having cost of capital as 12% is classified as __________?
A. hurdle rate
B. capital rate
C. return rate
D. budgeting rate - Weighted average cost of debt, preferred stock and common equity is classified as_____________?
A. Cost of salvage
B. Cost of interest
C. Cost of taxation
D. Cost of capital - Weighted average of probabilities is classified as____________?
A. Average rate of return
B. Expected rate of return
C. Past rate of return
D. Weighted rate of return - In capital budgeting, positive net present value results in_________________?
A. Negative economic value added
B. Positive economic value added
C. Zero economic value added
D. Percent economic value added - In capital budgeting, term of bond which has great sensitivity to interest rates is______________?
A. Long-term bonds
B. Short-term bonds
C. Internal term bonds
D. External term bonds - Profitability index in capital budgeting is used for_________?
A. Negative projects
B. Relative projects
C. Evaluate projects
D. Earned projects - In capital budgeting, an internal rate of return of project is classified as its__________?
A. External rate of return
B. Internal rate of return
C. Positive rate of return
D. Negative rate of return
