3RDEXAM-VALUATION
問題一覧
1
minimum rate of return required by suppliers of debt
Cost of debt
2
required return necessary to make a capital budgeting project, such as building a new factory, etc.
Cost of Capital
3
rate of return required by holders of a company's preferred stock
Cost of preferred stock
4
computed by multiplying the specific cost of each type of capital by its proportion (weight) in the firms capital structure and summing the weighted values.
WACC
5
a class of equity shares which has preference over ordinary (common) equity shares in the payment of dividends and in the distribution of corporation assets in the event of liquidation
Preferred Share
6
(traditionally known as common stock) is a form of long term equity that represents ownership interest of the firm.
Ordinary share
7
is a hybrid security that has characteristics of both debt and equity
Preferred Share
8
does not represent a contractual obligation to make specific payment
Ordinary Equity Share
9
No adjustment is madebfor flotation costs in determining either cost of EXISTING ordinary equity or cost of retained earnings
TRUE
10
THE BASE RATEbis often the rate on Treasury bonds or the rate on firm's own bonds
TRUE
11
Base rate of long term bonds of bond yield
TRUE
12
method of estimating the cost of equity
Discounted Cash Flow / DCF
13
simplistic technique used to estimate the cost of ordinary equity
Earnings-Price Ratio Method
14
this technique is unsuitable for a firm that is operating at a loss because it would generate negative cost of ordinary equity
Earnings Price Ratio Method
15
occurs when new ordinary equity shares sells below the current market price of outstanding ordinary equity share
Underpricing
16
While it is true that no direct costs are associated with retained earnings, the capital still has a cost
Opportunity cost
17
the total amount of capital that can be raised before new shares must be issued is defined as the
Retained Earnings Breakpoint
18
Flotation costs (underwriting, underpricing cost) are not deducted when getting retained earnings
TRUE
19
Flotation costs (underwriting, underpricing cost) are deductible when getting cost of NEW common shares
TRUE
2nd exam
2nd exam
Alpha Ton · 24問 · 1年前2nd exam
2nd exam
24問 • 1年前Capm
Capm
Alpha Ton · 27問 · 1年前Capm
Capm
27問 • 1年前1STEXAM-VALUATION
1STEXAM-VALUATION
Alpha Ton · 49問 · 1年前1STEXAM-VALUATION
1STEXAM-VALUATION
49問 • 1年前4THEXAM-VALUATION
4THEXAM-VALUATION
Alpha Ton · 9問 · 1年前4THEXAM-VALUATION
4THEXAM-VALUATION
9問 • 1年前問題一覧
1
minimum rate of return required by suppliers of debt
Cost of debt
2
required return necessary to make a capital budgeting project, such as building a new factory, etc.
Cost of Capital
3
rate of return required by holders of a company's preferred stock
Cost of preferred stock
4
computed by multiplying the specific cost of each type of capital by its proportion (weight) in the firms capital structure and summing the weighted values.
WACC
5
a class of equity shares which has preference over ordinary (common) equity shares in the payment of dividends and in the distribution of corporation assets in the event of liquidation
Preferred Share
6
(traditionally known as common stock) is a form of long term equity that represents ownership interest of the firm.
Ordinary share
7
is a hybrid security that has characteristics of both debt and equity
Preferred Share
8
does not represent a contractual obligation to make specific payment
Ordinary Equity Share
9
No adjustment is madebfor flotation costs in determining either cost of EXISTING ordinary equity or cost of retained earnings
TRUE
10
THE BASE RATEbis often the rate on Treasury bonds or the rate on firm's own bonds
TRUE
11
Base rate of long term bonds of bond yield
TRUE
12
method of estimating the cost of equity
Discounted Cash Flow / DCF
13
simplistic technique used to estimate the cost of ordinary equity
Earnings-Price Ratio Method
14
this technique is unsuitable for a firm that is operating at a loss because it would generate negative cost of ordinary equity
Earnings Price Ratio Method
15
occurs when new ordinary equity shares sells below the current market price of outstanding ordinary equity share
Underpricing
16
While it is true that no direct costs are associated with retained earnings, the capital still has a cost
Opportunity cost
17
the total amount of capital that can be raised before new shares must be issued is defined as the
Retained Earnings Breakpoint
18
Flotation costs (underwriting, underpricing cost) are not deducted when getting retained earnings
TRUE
19
Flotation costs (underwriting, underpricing cost) are deductible when getting cost of NEW common shares
TRUE