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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Q. The bond risk premium is 3% and the bond yield is 10.2% then the cost of common stock will be

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Q. The cost of new debt or marginal debt is also classified as

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Q. The bond yield is 12% and the bond risk premium is 4.5% then the cost of common stock would be

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Q. The forecast by analysts, retention growth model and historical growth rates are the methods used for an

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Q. The premium which is considered as difference of expected return on common stock and current yield on Treasury bonds is called

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Q. An interest rate which is paid by the firm as soon as it issues the debt is classified as pre-tax

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Q. The beta which is estimated as regression slope coefficient is classified as

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Q. In weighted average cost of capital, the capital components are the funds that are usually offered by

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Q. The cost which is used to calculate weighted average cost of capital is classified as

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Q. The special situation in which large projects are financed by with and securities claims on project's cash flow is classified as

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Q. The type of cost which is used to raise common equity by reinvesting internal earnings is classified as

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Q. If the future return on common stock is 19% and the rate on T-bonds is 11% then the current market risk premium will be

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Q. The historical growth rates, analysis forecasts and retention growth model are the approaches to estimate

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Q. In weighted average cost of capital, the cost of capital which is risk adjusted and developed for each category of

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Q. In retention growth model, the payout ratio is subtracted from one to calculate

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Q. If the retention rate is 0.68 then the payout rate will be

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Q. The cost of common stock is 15% and the bond yield is 10.5% then the bond risk premium will be

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