BUS 401 Week 4 Quiz
This exam consists of 10 multiple choice and true/false questions.
1. Question : Investors will make an investment if
2. Question : Which of the following is true regarding market risk?
3. Question : Which of the following statements regarding the cost of equity is true?
4. Question : The weighted average cost of capital is
5. Question : In the Capital Asset Pricing Model, the risk-free rate
6. Question : In the Capital Asset Pricing Model, the market risk premium can be thought of as:
7. Question : A bond pays semiannual coupon payments of $30 each. It matures in 20 years and is selling for $1,200. What is the firm’s cost of debt if the bond’s par value is $1,000? (Don’t forget this is a semiannual coupon.)
8. Question : Which of the following is beta is used for?
9. Question : The discount rate used in project evaluation should
10 Question : The financing mix reflected in the WACC should