18- What sources of long-term capital do firms use? A. Long-term debt B. Preferred stock C. Common stock D. All of the above 19- The component cost of common equity raised by retaining carnings is: A. ko В. К, C. k D. ka 20- Increasing the value of the combined firms more than the sum of the ind firms taken separately is known as: A. Risk management B. Maintaining control C. Synergy D. Diversification

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter12: Capital Structure
Section: Chapter Questions
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18- What sources of long-term capital do firms use?
A. Long-term debt
B. Preferred stock
C. Common stock
D. All of the above
19- The component cost of common equity raised by retaining carnings is:
A. ko
В. К.
C. ke
D. ks
20- Increasing the value of the combined firms more than the sum of the individual
firms taken separately is known as:
A. Risk management
B. Maintaining control
C. Synergy
D. Diversification
Transcribed Image Text:18- What sources of long-term capital do firms use? A. Long-term debt B. Preferred stock C. Common stock D. All of the above 19- The component cost of common equity raised by retaining carnings is: A. ko В. К. C. ke D. ks 20- Increasing the value of the combined firms more than the sum of the individual firms taken separately is known as: A. Risk management B. Maintaining control C. Synergy D. Diversification
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