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- which one is correct please confirm? QUESTION 24 All of the following methods may be used to determine the cost of equity capital (k e) for a non-dividend-paying stock EXCEPT ____. a. comparing with similar dividend-paying stocks in the industry b. the Capital Asset Pricing Model approach c. the risk premium on debt approach d. the simulation with growth expectations approach2) Capital raising involves a firm’s decision in ____________________. Group of answer choices a) All of the above. b) using long-term debt c) using common shares d) using short-term debtwhich one is correct please confirm? QUESTION 7 The cost of equity capital for non-dividend paying stocks can be determined by ____. I. using the Capital Asset Pricing Model II. estimating ke for comparable dividend-paying stocks in their industry a. Only statement I is correct. b. Only statement II is correct. c. Both statements I and II are correct. d. Neither statement I nor II is correct.
- REQUIREMENTS: 1. How much is the cost of equity using the capital asset pricing model? 2. How much is the cost of equity using the bond plus risk premium?which one is correct please confirm? QUESTION 11 Which of the following factors influence a firm's ability and/or willingness to pay dividends? a. liquidity b. borrowing capacity and access to capital markets c. earnings stability d. All of these are correcP1 M&M Proposition 2 states that the cost of a firm's common stock is directly related to the debt-to-equity ratio. both the debt-to-equity ratio and the required rate of return on the firm's underlying assets. the return of the market index. the required rate of return on the firm's underlying assets.
- n the formula ke >= (D1/P0) + g, what does (D1/P0) represent? Select one: a. The expected capital gains yield from a common stock b. The interest payment from a bond c. The expected dividend yield from a common stock d. The dividend yield from a preferred stockQuestion #5. When calculating the weighted average cost of capital (WACC), should we use marketvalues or balance sheet values as the weights of debt and equity? Explain your response6. What are the realized returns for the stock market, for Small Companies, Large Companies; long term Bonds, Long Term Gov Bonds, and US T Bills? What investment portfolio would select (do not include names of mutual funds or stocks, just overall types of investments.)?
- Which of the following may take the form of dividend income and/or capital appreciation? a. bond investments b.gain from an investment c.equity investments d.expected rate of returnWhat are the payout methods? Select all that apply. Group of answer choices a. Bank loan b. Buyout c. SPAC d. DividendInvestors pay load charges to receive: a. higher returns on their investments. b. additional services from funds. c. voting shares of stock. d. advice on which fund to buy. e. 12b-1 remunerations.
