A. Cost of salvage
B. Cost of interest
C. Cost of taxation
D. Cost of capital
Related Mcqs:
- A stock which is hybrid and works as a cross between debt and common stock is considered as_______________?
A. Hybrid stock
B. Common liabilities
C. Debt liabilities
D. Preferred stock - In situation of bankruptcy, stock which is recorded above common stock and below debt account is_____________?
A. Debt liabilities
B. Preferred stock
C. Hybrid stock
D. Common liabilities - 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 - _______________refers to the extent to which fixed-income securities (debt and preferred stock) are used in a firm’s capital structure?
A. Financial risk
B. Portfolio risk
C. Operating risk
D. Market risk - 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 - 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 weighted average cost of capital, capital components are funds that usually offer by____________?
A. Stock market
B. Investors
C. Capitalist
D. Exchange index - 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 balance sheet, sum of retained earnings and common stock are considered as_____________?
A. Preferred equity
B. Due equity
C. Common perpetuity
D. Common equity - 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
