The cost of common stock equity is ________. A) the cost of ...

[geoffrey]

The cost of common stock equity is ________.
 
  A) the cost of the guaranteed stated dividend expected by the stockholders
  B) the rate at which investors discount the expected dividends of the firm to determine its share value
  C) the after-tax cost of the interest obligations
  D) the historical cost of floating the stock issue

Question 2

The riskiness of publicly traded bond issues is rated by independent agencies. According to Moody's rating system, an Aaa bond and a Caa bond are ________ and ________ respectively.
 
  A) speculative; investment grade
  B) prime quality; medium grade
  C) prime quality; speculative
  D) medium grade; lowest grade

[s.meritte]

Answer to Question 1

B

Answer to Question 2

C

[geoffrey]

Thank you

[s.meritte]

Happy to help you