Which of the following is not an assumption of the capital asset pricing model (CAPM)?
Given: risk-free rate of return = 5 %; market return = 10%; cost of equity = 15%; value of beta (β) is:
may be defined as the cost of raising an additional rupee of capital:
Which of the following cost of capital requires to adjust taxes?
Marginal Cost of capital is the cost of:
In order to calculate Weighted Average Cost of Capital, weights may be based on:
Firm’s Cost of Capital is the average cost of:
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)?
The cost of equity capital is all of the following except:
What is the overall (weighted average) cost of capital when the firm has ₹ 20 crores in long-term debt, ₹ 4 crores in preferred stock, and ₹ 16 crores in equity shares? The before-tax cost for debt, preferred stock, and equity capital are 8%, 9%, and 15%, respectively. Assume a 50% tax rate.