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  3. 23 capital structure decisions refer to the a dividend yield...

Question: 23 capital structure decisions refer to the a dividend yield...

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23. Capital structure decisions refer to the: A. dividend yield of the firms stock B. blend of equity and debe used by the fim C. capital gains available on the firms stock D. maturity date for the firms securities 24. If the line measuring a stocks historic returns against the markets historic returns has a slope greater than 1.0, then the: A. stock is currently underpriced B, market risk peemium is increasing. C. stock has a significant amount of unique risk D. stoek has a beta exceeding 1.0 25. When a projects internal rate of return equals its opportunity cost of capital, then the: A. projoct should be rejected B. project has no cash inflows. С.net present value will be posative D. net present valuc will be zero. 26. To calculate the present value of a business, the firms free cash flows should be discounted at the firms: A. weightod-average of capital B. pre-tax cost of debt C. aftertax cost of debe D. cost of equity 27. Firms that make investment decisions based on the payback rule may be biased toward rejecting projects: A. with short lives B, with kong lives. C. with late cash inflows. D. that have negative NPVs. 28. Stock returns can be explained by the stocks stocks and the A. beta; unique risk B, beta; market risk C. unique risk; firm-specific risk D. aggressive risk; defensive risk 29. When will ROE (Return on equity) equal ROC (Return on capital)? A. Whenever the firm has oqual debt and oquity financing B. Whenever the firm has no interest payments on debt C. whenever the value of the firms assets exceeds the value of its equity D. ROE will never oqual ROC
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