Source of? long-term funds and capital

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1. Which of the following is a source of? long-term funds/capital?

A. common stock

B. preferred stock

C. ?long-term debt such as bonds

D. retained earnings

E. All of the above

2. The cost of debt when a firm uses bonds as a source of? long-term funds is? called:

A. CAPM

B. DGM

C. Gordona model

D. YTM

3. If a firm does not pay? dividends, the cost of equity is estimated using which of the? following?

A. CAPM

B. DGM

C. YTM

D. Gordona model

4. The mix of equity and debt a firm uses to finance? long-term capital projects is? called:

A. financial structure

B. liquidity

C. capital structure

D. funds structure

5. The total costs of issuing and selling a security is called

A. administrative fee

B. flotation cost

C. investment bank fee

D. issuing cost

6. The quoted price of a bond is 115. If the par value is? $1,000, the? bond's price is

A. ?$1,150

B. ?$115

C. ?$11.5

D.?$1,000

Reference no: EM131886414

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