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โ† SetsFinancial Management โ€” Set 7
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Financial Management Practice Questions โ€” Set 7

10 free Financial Management reviewer questions with answers and explanations. Pindutin ang sagot mo para makita agad kung tama โ€” kasama na ang paliwanag. Set 7 of 12.

61

WACC stands for:

62

The cost of debt is typically lower than cost of equity because:

63

A company has โ‚ฑ6M in 8% debt and โ‚ฑ4M in equity with 12% required return, tax rate 30%. What is WACC?

64

What determines the cost of equity?

65

Capital structure refers to:

66

According to Modigliani-Miller theory, in perfect markets with no taxes, capital structure:

67

Financial leverage amplifies:

68

The optimal capital structure is reached when:

69

Ayala Land issues bonds at 6% interest with 30% tax rate. The after-tax cost of debt is:

70

Factors affecting optimal capital structure include all EXCEPT: