MCQOPTIONS
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MCQOPTIONS
This section includes 53 Mcqs, each offering curated multiple-choice questions to sharpen your Financial Management/Financial Markets knowledge and support exam preparation. Choose a topic below to get started.
| 51. |
During the planning period, a marginal cost for raising a new debt is classified as |
| A. | debt cost |
| B. | relevant cost |
| C. | borrowing cost |
| D. | embedded cost |
| Answer» C. borrowing cost | |
| 52. |
The cost of common stock is 14% and the bond risk premium is 9% then the bond yield will be |
| A. | 0.0156 |
| B. | 0.05 |
| C. | 0.23 |
| D. | 0.6428 |
| Answer» C. 0.23 | |
| 53. |
The cost of common stock is 13% and the bond risk premium is 5% then the bond yield would be |
| A. | 18 |
| B. | 0.026 |
| C. | 0.08 |
| D. | 0.18 |
| Answer» D. 0.18 | |