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

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

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

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

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

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

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

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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

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

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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

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

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

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

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

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

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

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Q. The preferred dividend is divided by preferred stock price multiply by (1-floatation cost) is used to calculate

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Q. The stock selling price is $65, expected dividend is $20 and cost of common stock is 42% then expected growth rate will be

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Q. In retention growth model, the percent of net income firms usually pay out as shareholders dividends, is classified as

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Q. In weighted average cost of capital, the rising in interest rate leads to

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