« previous next »

Author Question: Which of the following causes a firm's cost of capital (WACC) to differ from an investor's required ... (Read 79 times)

gbarreiro

  • Hero Member
  • *****
  • Posts: 566
on: Jul 10, 2018
Which of the following causes a firm's cost of capital (WACC) to differ from an investor's required
  rate of return on the company's common stock?
 
  A) the fact that the risk-free rate of interest has increased
  B) The market risk premium exceeds 12.
  C) the incurrence of flotation costs when new securities are issued
  D) None of the above N the WACC and required return are the same.

Question 2

The external funds requirement results primarily from ________. (See Table 4.5)
 
  A) the payment of dividends
  B) the retirement of debt and purchase of new fixed assets
  C) low profit margin
  D) high cost of sales
Foundations of Finance ¦ Keown, Petty, Martin ¦ 9th Edition
Buy Test-Bank


diana chang

  • Sr. Member
  • ****
  • Posts: 288
Reply #1 on: Jul 10, 2018
Answer to Question 1

C

Answer to Question 2

B


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Addicts to opiates often avoid treatment because they are afraid of withdrawal. Though unpleasant, with proper management, withdrawal is rarely fatal and passes relatively quickly.

Did you know?

Signs and symptoms that may signify an eye tumor include general blurred vision, bulging eye(s), double vision, a sensation of a foreign body in the eye(s), iris defects, limited ability to move the eyelid(s), limited ability to move the eye(s), pain or discomfort in or around the eyes or eyelids, red or pink eyes, white or cloud spots on the eye(s), colored spots on the eyelid(s), swelling around the eyes, swollen eyelid(s), and general vision loss.

Did you know?

In Eastern Europe and Russia, interferon is administered intranasally in varied doses for the common cold and influenza. It is claimed that this treatment can lower the risk of infection by as much as 60–70%.

Did you know?

According to the FDA, adverse drug events harmed or killed approximately 1,200,000 people in the United States in the year 2015.

Did you know?

Anesthesia awareness is a potentially disturbing adverse effect wherein patients who have been paralyzed with muscle relaxants may awaken. They may be aware of their surroundings but unable to communicate or move. Neurologic monitoring equipment that helps to more closely check the patient's anesthesia stages is now available to avoid the occurrence of anesthesia awareness.

Gently squeeze/milk the arm with twisting motion. With oil or lotion on hands, use gentle but firm ... Gently squeeze/milk the arm with twisting motion. With oil or lotion on hands, use gentle but firm ...
GDP and Capital per Worker, 2009 GDP and Capital per Worker, 2009
Management Information Systems: Managing the Digital Firm, 15th Edition Management Information Systems: Managing the Digital Firm, 15th Edition
High school science classes are required to use deductive logic High school science classes are required to use deductive logic
When operating your own business, it is wise to know your cost of capital and that of the ... When operating your own business, it is wise to know your cost of capital and that of the ...
Calculate the weighted-average cost of the following inventory purchases:DateQuantity ... Calculate the weighted-average cost of the following inventory purchases:DateQuantity ...
Video: Chronology of leptin research (A history of leptin research)

For a complete list of videos, visit our video library