In weighted average cost of capital, rising in interest rate leads to_________________?

Related Mcqs:

1. In weighted average cost of capital, capital components are funds that usually offer by____________?

   A. Stock market
   B. Investors
   C. Capitalist
   D. Exchange index

2. 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

3. Capital budgeting decisions are analyzed with help of weighted average and for this purpose____________?

   A. Component cost is used
   B. Common stock value is used
   C. Cost of capital is used
   D. Asset valuation is used

4. 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

5. 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

6. Falling interest rate leads change to bondholder income which is__________?

   A. Reduction in income
   B. Increment in income
   C. Matured income
   D. Frequent income

7. An increasing in interest rate leads to decline in value of__________?

   A. Junk bonds
   B. Outstanding bonds
   C. Standing bonds
   D. Premium bonds

8. 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

9. 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

10. If you plan to save Rs. 5,000 with a bank at an interest rate of 8%, what will be the worth of your amount after 4 years if interest is compounded annually?

    A. Rs. 5,400
    B. Rs. 5,900
    C. Rs. 6,600
    D. Rs. 6,802