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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Q. The cost of equity which is raised by reinvesting earnings internally must be higher than the

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Q. The dividend per share is $15 and sell it for $120 and floatation cost is $3.0 then the component cost of preferred stock will be

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Q. In the pure play method, a company can calculate its own cost of capital with the help of averaging an

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Q. The capital budgeting decisions are analyzed with the help of weighted average and for this purpose

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Q. A formula of after-tax component cost of debt is

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