Cost of Capital Multiple Choice Questions Test 1 pdf Download

Practice BBA financial management test 1 with MCQ on weighted average cost of capital online for learning. Practice cost of capital multiple choice questions (MCQ) on weighted average cost of capital, bond yield and bond risk premium, capital risk adjustment,. Free study guide has answering options relevant cost, debt cost, borrowing cost and embedded cost of multiple choice questions (MCQ) as during planning period, a marginal cost for raising a new debt is classified as to test learning skills. Study to learn weighted average cost of capital quiz questions to practice MCQ based online exam preparation test.

MCQ on Cost of Capital - Test 1

MCQ. During planning period, a marginal cost for raising a new debt is classified as

  1. debt cost.
  2. relevant cost.
  3. borrowing cost.
  4. embedded cost.

B

MCQ. Cost of common stock is 14% and bond risk premium is 9% then bond yield will be

  1. 1.56%.
  2. 5%.
  3. 23%.
  4. 64.28%.

B

MCQ. In weighted average cost of capital, a company can affect its capital cost through

  1. policy of capital structure.
  2. policy of dividends.
  3. policy of investment.
  4. all of above.

D

MCQ. A risk associated with project and way considered by well diversified stockholder is classified as

  1. expected risk.
  2. beta risk.
  3. industry risk.
  4. returning risk.

B

MCQ. Cost of common stock is 13% and bond risk premium is 5% then bond yield would be

  1. $18.
  2. 2.60%.
  3. 8%.
  4. 18%.

C

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