举一反三
- The average of a firm's cost of equity and after tax cost of debt that is weighted based on the firm's capital structure is called the: A: reward to risk ratio B: weighted capital gains rate C: structured cost of capital D: weighted average cost of capital
- The value of a firm is maximized when the A: cost of equity is maximized. B: tax rate is zero. C: levered cost of capital is maximized. D: weighted average cost of capital is minimized.
- Which one of the following terms is defined as the mixture of a firm's debt and equity financing? A: cash management B: cost analysis C: capital structure D: working capital management
- Net income is $500m, depreciation is $100m, capital expenditures and debt repayment is $50m and $150m respectively. What is the amount of free cash flow to equity?
- The capital structure that maximizes the value of a firm also: A: minimizes financial distress costs. B: minimizes the cost of capital. C: maximizesthe present value of the tax shield on debt. D: maximizes the value of the debt.
内容
- 0
Companies can raise capital through debt financing and equity financing.
- 1
Economic value added can be improved by A: Increasing profit without using more capital. B: Using less capital to earn the same amount of profit. C: Investing capital in high-return projects. D: Investing capital in low-return projects.
- 2
Cost of capital isthe company’s cost of capital multiplied by the amount of the investment.
- 3
If a firm has a debt to owners' equity ratio of .75 (or 75%) we can conclude that A: it has relied more on debt than equity to finance its operations. B: the firm is likely to have trouble paying its short-term debts when they come due. C: its total liabilities are less than its owners' equity. D: the firm has expenses that are exactly 75% of its gross profit.
- 4
For example, if a company has 1.5 million shares outstanding at a share price of $25, its ___________ is $37.5 million. A: market cap B: profit C: maximum value D: capital