2. Compute the overall cost of capital based the following data. Which weight is preferable? Why? Descriptions Equity Debt Preference Shares TOTAL Specifi c cost of capital 20% 10% 14% Marginal Weights Book Value Weights Market Value Weights Amount Proportion Amounts Proportions Amount Proportions S 200 700 200 1100 0.18 0.64 0.18 1.00 300 400 100 800 0.38 0.50 0.13 1.00 600 800 200 1600 0.4 0.5 0.1 1.00

For an unlevered​ firm, the cost of capital can be determined by using the​ ________.   A. Preferred stock yield   B. Yield to maturity on the traded debt   C. Capital Asset Pricing Model   D. Dividend yield

According to the simplified Brennan Lally CAPM, what is the cost of equity for A Ltd? Using the cost of debt, cost of equity, market value of debt and market value of equity given in the table given, what is the weighted average cost of capital (WACC) for B Ltd? Thank you!

le1.du.edu.om/mod/quiz/attempt.php?attempt=3518968&cmid3229109&page%=D2 Google Translate Moodle English (en) - purses / BUSS 105-5-20202 / General / TEST 2 Suppose a firm is using only two forms of financing i.e. Debt and Equity. Consider the following capital structure with different debt-equity combinations and calculate Weighted Average Cost of Capital Components Cost Weight Debt 7.85% 45% Equity 26.70% Select one: O a. 18.21% O b. 17.52% O G. 17.50% O d. None Wiole 18% U ENG A 40) A s 米 % $ 4. 8 #3 3. V Y 1 F 1 H K G

A firm's capital is composed of the following sources and proportions: Source of Capital Weights Cost Long-term Debt 25% 6.0% Preferred Stock 35% 7.0% Common Stock 40% 8.0% The weighted average cost of capital is: A. 7.15%B. 6.85%C. 5.25%D. 7.00%

am. 123.

1. The leverage ratio is the proportion of debts that a bank has compared to its equity/capital.   Please answer one that is most correct   Select one: a. Debt to Equity = Total debt / Shareholders Equity. b. Debt to Capital = Total debt / Capital (debt+equity) c. There are different leverage ratios such as. Debt to Equity = Total debt / Shareholders Equity. Debt to Capital = Total debt / Capital (debt+equity) Debt to Assets = Total debt / Assets.   2. Which of the following amortization methods is most likely to evenly distribute the cost of an intangible asset over its useful life? Select one: a. Units-of-production method. b. Straight-line method. c. Double-declining balance method   3. What ratio is a cash and marketable securities based (it removes Inventory) ? Select one: a. Quick Ratio b. Current Ratio c. Dupont Analysis set of ratios   4. Which of the following is an appropriate method of computing free cash flow to the firm?  Select one: a. Add operating cash flows to…

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-n Weighted average cost of capital (WACC) is the: O A. O B. O C. O D. O E. Average IRR of the firm's current projects. Required rate of return on a firm. Cost of utilizing debt financing. Average rate of return needed to increase the value of a firm's stock. Cost of obtaining equity financing.

Suppose your firm  has a market value of equity is $500 million and a market value of debt is $475 million. What are the capital structure weights (i.e., weight of equity and weight of debt)? Group of answer choices A) weight of equity is 51.28%, , weight of debt is 48.72% B) weight of equity is 48.72%, , weight of debt is 51.28% C) weight of equity is 47.62%, , weight of debt is 52.38%