Bond Yield and Bond Risk Premium Quiz Questions and Answers PDF - 133

MCQ 661: The cost of equity which is raised by reinvesting earnings internally must be higher than the

1. cost of initial offering
2. cost of new common equity
3. cost of preferred equity
4. cost of floatation

MCQ 662: The cost which has occurred already and not affected by decisions is classified as

1. sunk cost
2. occurred cost
3. weighted cost
4. mean cost

MCQ 663: In capital asset pricing model, the investors assume that buying and selling activity will

1. affect stock prices
2. not affect stock prices
3. have high taxes
4. high transaction cost

MCQ 664: An initial cost is $6000 and the probability index is 5.6 then the present value of cash flows will be

1. 25000
2. 28000
3. 33600
4. 30000

MCQ 665: The yield of interest rate which is below than coupon rate, this yield is classified as

1. yield to maturity
2. yield to call
3. yield to earnings
4. yield to investors