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Author Question: Which component of a firm's capital structure is the most difficult to estimate? (Read 14 times)

ETearle

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Question 1

When using the bond yield plus risk premium approach to estimating the cost of equity, the equity risk premium is usually about
◦ 3-5%.
◦ 8-10%.
◦ 20-25%.
◦ 10-15%.
◦ 30-33%.

Question 2

Which component of a firm's capital structure is the most difficult to estimate?
◦ Preferred stock
◦ Equity
◦ Bank loans
◦ Bond-financed debt
◦ Private placements of debt


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Marked as best answer by ETearle on Apr 25, 2021

Alyson.hiatt@yahoo.com

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ETearle

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Reply 2 on: Apr 25, 2021
Thanks for the timely response, appreciate it


olderstudent

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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