Net income available to stockholders is $150 and total assets are $2,100 then return on total assets would be:
A. 0.07%
B. 7.14%
C. 0.05 times
D. 7.15 times
Return on assets = 5.5%, Total assets $3,000 and common equity $1,050 then return on equity would be:
A. $22,275
B. 15.71%
C. 1.93%
D. 1.925 times
Risk free rate is subtracted from expected market return is considered as:
A. Country risk
B. Diversifiable risk
C. Equity risk premium
D. Market risk premium
Capital budgeting decisions are analysed with help of weighted average and for this purpose:
A. Component cost is used
B. Common stock value is used
C. Cost of capital is used
D. Asset valuation is used
In weighted average cost of capital, capital components are funds that usually offer by:
A. Stock market
B. Investors
C. Capitalist
D. Exchange index
An interest rate which is paid by firm as soon as it issues debt is classified as pre-tax:
A. Term structure
B. Market premium
C. Risk premium
D. Cost of debt
Forecast by analysts, retention growth model and historical growth rates are methods used for an:
A. Estimate future growth
B. Estimate option future value
C. Estimate option present value
D. Estimate growth ratio
Capital gain expected by stockholders and dividends are included in:
A. Debt rate
B. Investment return
C. Interest rate
D. Cost of equity
Markets dealing loans of autos, education, vacations and appliances are considered as:
A. Consumer credit loans
B. Commercial markets
C. Residential markets
D. Mortgage markets
Bonds issued to individuals by corporations are classified as:
A. Municipal bonds
B. Corporate bonds
C. U.S treasury bonds
D. Mortgages
