During planning period, a marginal cost for raising a new debt is classified as__________?

Related Mcqs:

1. 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...

2. 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...

3. During the accounting period, sales revenue is Rs. 25,000 and accounts receivable increases by Rs. 8,000. What will be the amount of cash received from customers for the period?

   A. Rs. 33,000 B. Rs. 25,000 C. Rs. 17,000 D. Rs. 8,000...

4. A formula of after-tax component cost of debt is___________?

   A. Interest rate-tax savings B. Marginal tax-required return C. Interest rate + tax savings D. Borrowing cost + embedded cost...

5. An increase in marginal cost of capital and the capital rationing are two arising complications of __________?

   A. maximum capital budget B. greater capital budget C. optimal capital budget D. minimum capital budget...

6. 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...

7. An interest rate which is paid by firm as soon as it issues debt is classified as pre-tax__________?

   A. Term structure B. Market premium C. Risk premium D. Cost of debt...

8. Markets which deals with high liquid and short-term debt securities are classified as_____________?

   A. Capital markets B. Money markets C. Liquid markets D. Short-term markets...

9. Cash flow which starts negative than positive then again positive cash flow is classified as__________?

   A. Normal costs B. Non-normal costs C. Non-normal cash flow D. Normal cash flow...

10. An investor who buys shares and writes a call option on stock is classified as__________?

    A. Put investor B. Call investor C. Hedger D. Volatile hedge...