Final EXam 95%.docx - Final Exam \u2013 Concepts Covers Chapters 9 10 11 14 15 and 21 20 multiple choice concept questions Time limit 1.5 hours Due by

Final EXam 95%.docx - Final Exam u2013 Concepts Covers...

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Final Exam – Concepts Covers Chapters 9, 10, 11, 14, 15, and 21 20 multiple choice concept questions. Time limit: 1.5 hours. Due by Sunday at 11:59 p.m. ET. Attempt History Attempt Time Score LATEST Attempt 1 47 minutes 95 out of 100 Score for this quiz: 95 out of 100 Submitted Jun 27 at 2:59pm This attempt took 47 minutes. Question 15 / 5 ptsSchalheim Sisters Inc. has always paid out all of its earnings as dividends; hence, the firm has no retained earnings. This same situation is expected to persist in the future. The company uses the CAPM to calculate its cost of equity, and its target capital structure consists of common stock, preferred stock, and debt. Which of the following events would reduce its WACC? Correct! The market risk premium declinesThe flotation costs associated with issuing new common stock increaseThe company’s beta increasesExpected inflation increases
The flotation costs associated with issuing preferred stock increase Question 25 / 5 ptsWhich of the following statements is correct? Correct! If a company’s beta increases, this will increase the cost of equity used to Question 35 / 5 ptsWhich of the following statements is correct?

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