Time Left:

FMSM 4TH CH

Attempt now to get your rank among top students!

Marks: 10

Q.   1

Which of the following is not an assumption of the capital asset pricing model (CAPM)?

Q.   2

Given: risk free rate of return= 5 %; market return= 10%; cost of equity= 15%; value of beta (β) is:

Q.   3

.............................. may be defined as the cost of raisingan additional rupee of capital:

Q.   4

Which of the following cost of capital requires to adjust taxes?

Q.   5

Marginal Cost of capital is the cost of:

Q.   6

In order to calculate Weighted Average Cost of Capital, weights may be based on:

Q.   7

Firm’s Cost of Capital is the average cost of:

Q.   8

A company has a financial structure where equity is 70% of its total debt plus equity. Its cost of equity is 10% and gross loan interest is 5%. Corporation tax is paid at 30%. What is the company’s weighted average cost of capital (WACC)?  

Q.   9

The cost of equity capitalis all of the following except:

 

Q.   10

What is the overall (weighted average) cost of capital when the firm has ` 20 crores in long-termdebt, ` 4 crores in preferred stock, and ` 16 croresin equity shares? The before-tax cost for debt, preferred stock, and equity capital are 8%, 9%, and 15%, respectively. Assume a 50% tax rate.     

Chat on WhatsApp