Which is not associated with the cost of capital concept

Assignment Help Accounting Basics
Reference no: EM132809396

Problem 1: The value of the stock

A. Increases as the dividend growth rate decreases

B. Increases as the required rate of return decreases

C. Increases as the required rate of return increases

D. None of the above

Problem 2: The most expensive source of financing for a firm is

a. debt

b. preferred stock

c. retained earnings

d. new common stock

Problem 3: Which of the following is not associated with the cost of capital concept?

A. Minimum rate of return on new projects

B. Weighted average cost of capital

C. The required rate of return of investors

D. The historical cost of funds

Reference no: EM132809396

Questions Cloud

Which mix of debt and equity that minimizes cost of capital : Which mix of debt and equity that minimizes the cost of capital is the? optimal operating leverage. / optimal degree of combined leverage
Contrast the various change management models : Compare and contrast the various change management models.
Why are some companies yanking forced-ranking : Forced ranking is a popular performance management tool for many well-known companies such as Ford Motor Company, 3M, and Intel
Which changes would tend to increase the company cost : Which changes would tend to increase the company cost of capital for traditional firm? When establishing their optimal capital structure, firms should strive to
Which is not associated with the cost of capital concept : Which is not associated with the cost of capital concept? Which the most expensive source of financing for a firm is? Which The value of the stock?
What elements of culture need to be maintained : What elements of culture need to be maintained in an organization and what needs to be added?
Achievement of an organization strategic objectives : How does the HR planning process facilitate the achievement of an organization's strategic objectives?
What would be the amount of the capital gain in the year : The individual invested $500,000 in a new small business corporation. What would be the amount of the capital gain in the year of sale?
What is a star interview question : What is a STAR interview question? Give examples on how it is used for a promotion within an organization; and answer that is sufficient to exceed expectations

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd