B. Stand-alone risk(Correct)
C. Variable risk
D. Returning risk
Variability for expected returns for projects is classified as___________?
B. Stand-alone risk(Correct)
C. Variable risk
D. Returning risk
Financial Management Mcqs
B. Stand-alone risk(Correct)
C. Variable risk
D. Returning risk
Method uses for an estimation of cost of equity is classified as___________?
B. Future cash flow method
C. Discounted cash flow method(Correct)
D. Present cash flow method
In weighted average capital, capital structure weights estimation does not rely on value of__________?
B. Market value of equity
C. Book value of equity(Correct)
D. Stock equity
Beta which is estimated as regression slope coefficient is classified as___________?
B. Market beta
C. Coefficient beta
D. Riskier beta
Risk free rate is subtracted from expected market return is considered as___________?
B. Diversifiable risk
C. Equity risk premium(Correct)
D. Market risk premium
Capital budgeting decisions are analyzed with help of weighted average and for this purpose____________?
B. Common stock value is used
C. Cost of capital is used(Correct)
D. Asset valuation is used
In weighted average cost of capital, capital components are funds that usually offer by____________?
B. Investors(Correct)
C. Capitalist
D. Exchange index
An interest rate which is paid by firm as soon as it issues debt is classified as pre-tax__________?
B. Market premium
C. Risk premium
D. Cost of debt(Correct)
Forecast by analysts, retention growth model and historical growth rates are methods used for an______________?
B. Estimate option future value
C. Estimate option present value
D. Estimate growth ratio
In weighted average cost of capital, rising in interest rate leads to_________________?
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