Weighted Average Cost of Capital MCQs Test Online pdf Download

Practice MCQs on weighted average cost of capital with finance tests for online test prep and learning. Free study guide has multiple choice questions (MCQ) with weighted average cost of capital quiz as during planning period, a marginal cost for raising a new debt is classified as, answering options debt cost, relevant cost, borrowing cost and embedded cost for exam prep. Study to learn weighted average cost of capital quiz online with MCQs to practice test questions with answers.

MCQs on Weighted Average Cost of Capital

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. 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. Cost of capital is equal to required return rate on equity in case if investors are only

  1. valuation manager.
  2. common stockholders.
  3. asset seller.
  4. equity dealer.

B

MCQ. Interest rate is 12% and tax savings (1-0.40) then after-tax component cost of debt will be

  1. 7.20%.
  2. 7.2 times.
  3. 17.14 times.
  4. $17.14.

A

MCQ. Retention ratio is 0.60 and return on equity is 15.5% then growth retention model would be

  1. 14.90%.
  2. 25.84%.
  3. 16.10%.
  4. 9.30%.

D

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