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Terms in this set (9)
`the _____________ is the rate of return that a firm must earn on its investments in order to maintain the market value of its stock.
cost of capital
the 4 basic sources of long-term funds for a firm are
long term debt, common stock, preffered stock, and retained earnings
which of the following is a source of long-term funds
generally, the order of cost, from the least expensive to the most expensive, for long-term capital of a corporation is
log-term debt, preffered stock, retained earnings, new common stock
Generally the least expensive source of long-term capital is
a tax adustment must be made in determining the cost of
the before-tax cost of debt for a firm, which has a marginal tax rate of 40%, is 12%. the after tax cost of debt is_________
what is the dividend on a 8% preferred stock that currently sells for $45 and has a face value of $50 per share?
a firm has a common stock with a market price of $25 per share and an expected dividend of
$2 per share at the end of the coming year. The growth rate in dividends has been 5%. The cost of the firm's common stock equity is____________
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