Question

A risk associated with the project and the way considered by well diversified stockholder is classified as

a.

expected risk

b.

beta risk

c.

industry risk

d.

returning risk

Answer: (b).beta risk

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. A risk associated with the project and the way considered by well diversified stockholder is classified as

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. The cost of common stock is 13% and the bond risk premium is 5% then the bond yield would be

Q. The variability for the expected returns for projects is classified as

Q. The cost of common stock is 16% and the bond yield is 9% then the bond risk premium would be

Q. If the future return on common stock is 14% and the rate on T-bonds is 5% then the current market risk premium will be

Q. The cost of capital is equal to required return rate on equity in the case if investors are only

Q. The interest rate is 12% and the tax savings (1-0.40) then the after-tax component cost of debt will be

Q. The retention ratio is 0.60 and the return on equity is 15.5% then the growth retention model would be

Q. The method uses for an estimation of cost of equity is classified as

Q. An attempt to make correction by adjusting historical beta to make it closer to an average beta is classified as

Q. The method in which company finds other companies considered in same line of business to evaluate divisions is classified as

Q. The bond risk premium is added in to bond yield to calculate

Q. The stock selling price is $45, an expected dividend is $10 and an expected growth rate is 8% then cost of common stock would be

Q. A type of beta which incorporates about company such as changes in capital structure is classified as

Q. The dividend per share is $18 and sell it for $122 and floatation cost is $4 then the component cost of preferred stock will be

Q. In weighted average capital, the capital structure weights estimation does not rely on the value of

Q. The interest rates, tax rates and market risk premium are the factors which an/a

Q. For each component of capital, a required rate of return is considered as

Q. If the payout ratio is 0.45 then the retention ratio will be

Q. The stock selling price is $35, expected dividend is $5 and expected growth rate is 8% then cost of common stock would be

Q. The retention ratio is 0.55 and the return on equity is 12.5% then the growth retention model would be

Recommended Subjects

Are you eager to expand your knowledge beyond Financial Management and Financial Markets? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!