Finance Mcqs Archives - Page 30 of 45 -

Method uses for an estimation of cost of equity is classified as___________?

June 4, 2021January 16, 2019 by admin

Method uses for an estimation of cost of equity is classified as___________?

A. Market cash flow
B. Future cash flow method
C. Discounted cash flow method(Correct)
D. Present cash flow method

June 4, 2021January 16, 2019 by admin

In weighted average capital, capital structure weights estimation does not rely on value of__________?

A. Investors equity
B. Market value of equity
C. Book value of equity(Correct)
D. Stock equity

June 4, 2021January 16, 2019 by admin

Beta which is estimated as regression slope coefficient is classified as___________?

A. Historical beta(Correct)
B. Market beta
C. Coefficient beta
D. Riskier beta

June 4, 2021January 16, 2019 by admin

Risk free rate is subtracted from expected market return is considered as___________?

A. Country risk
B. Diversifiable risk
C. Equity risk premium(Correct)
D. Market risk premium

June 4, 2021January 16, 2019 by admin

Capital budgeting decisions are analyzed with help of weighted average and for this purpose____________?

A. Component cost is used
B. Common stock value is used
C. Cost of capital is used(Correct)
D. Asset valuation is used

June 4, 2021January 16, 2019 by admin

In weighted average cost of capital, capital components are funds that usually offer by____________?

A. Stock market
B. Investors(Correct)
C. Capitalist
D. Exchange index

June 4, 2021January 16, 2019 by admin

An interest rate which is paid by firm as soon as it issues debt is classified as pre-tax__________?

A. Term structure
B. Market premium
C. Risk premium
D. Cost of debt(Correct)

June 4, 2021January 16, 2019 by admin

Forecast by analysts, retention growth model and historical growth rates are methods used for an______________?

A. Estimate future growth(Correct)
B. Estimate option future value
C. Estimate option present value
D. Estimate growth ratio

Mcq Added by: Muhammad Atif Khattak

August 12, 2021January 16, 2019 by admin

In weighted average cost of capital, rising in interest rate leads to_________________?

A. Increase in cost of debt
B. Increase capital structure
C. Decrease in cost of debt
D. Decrease capital structure

August 12, 2021January 15, 2019 by admin

Capital gain expected by stockholders and dividends are included in____________?

A. Debt rate
B. Investment return
C. Interest rate
D. Cost of equity