Cost of Capital Multiple Choice Questions 1 PDF Download

Practice cost of capital multiple choice questions (MCQs), finance test 1 for online exams. Practice weighted average cost of capital MCQs questions and answers on weighted average cost of capital, bond yield and bond risk premium, capital risk adjustment with answers. Free cost of capital quiz, online study guide has helping answer key with choices as relevant cost, debt cost, borrowing cost and embedded cost of multiple choice questions as during planning period, a marginal cost for raising a new debt is classified as to test learning skills for viva exam preparation and job's interview questions. Study to learn weighted average cost of capital quiz questions with online learning MCQs for competitive exam preparation test.

MCQ on Cost of Capital Quiz PDF Download Test 1

MCQ. During the 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. The cost of common stock is 14% and the bond risk premium is 9% then the 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 the project and the way considered by well diversified stockholder is classified as

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

B

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

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

C