chapter9

Chapter9 - be considered when calculating a firm's cost of debt EXCEPT Selected Answer Correct Answer Question 7 1 out of 1 points Consider a firm

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Question 1 1 out of 1 points The cost of capital can be thought of as __________. Selected Answer: Correct Answer: Question 2 1 out of 1 points A return on assets that is higher than the cost of capital corresponds with an increase in firm value. Selected Answer: Correct Answer: Question 3 1 out of 1 points Financing decisions affect __________. Selected Answer: Correct Answer: Question 4 1 out of 1 points Corporate managers look at returns required by the stockholders and bondholders as a cost. Selected Answer: Correct Answer:
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Question 5 1 out of 1 points Which of the following terms is the one that answers the question, "On average, how much does it cost this firm to keep $1 of capital for 1 year?" Selected Answer: Correct Answer: Question 6 1 out of 1 points All of the following should
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Unformatted text preview: be considered when calculating a firm's cost of debt EXCEPT __________. Selected Answer: Correct Answer: Question 7 1 out of 1 points Consider a firm whose borrowing cost is 10%. If this firm's debt has no flotation costs but does benefit from a tax shield, then the firm's cost of debt will be __________. Selected Answer: Correct Answer: Question 8 1 out of 1 points Which of the following is NOT one of the primary methods for computing the cost of common stock ? Selected Answer: Correct Answer: Question 9 1 out of 1 points Which of the following would NEVER be needed to calculate a firm's WACC? Selected Answer: Correct Answer: Question 10 1 out of 1 points Finance is cool. (Hint: Do you really need a hint for this one?) Selected Answer: Correct Answer:...
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This note was uploaded on 11/16/2011 for the course BUS M 301 taught by Professor Jimbrau during the Summer '11 term at BYU.

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Chapter9 - be considered when calculating a firm's cost of debt EXCEPT Selected Answer Correct Answer Question 7 1 out of 1 points Consider a firm

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