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Weighted Average Cost of Capital MCQs Quiz Online Tests pdf Download

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

MCQs on Weighted Average Cost of Capital Quiz pdf Download

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