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1-Which of the following is not used in the weighted average cost of capital equ

ID: 2700203 • Letter: 1

Question

1-Which of the following is not used in the weighted average cost of capital equation? Answer cost of retained earnings weight of debt corporate income tax rate marginal tax rate

2-Of the components shown below, which is least likely to be of value in calculating the cost of preferred stock? Answer flotation costs per share book value of a preferred share dividends per share initial market price per share

3-A revolving credit agreement is a: Answer banker%u2019s agreement to extend the maturity of a loan banker%u2019s standby agreement to provide a guaranteed line of credit for a specified period of time large loan supported by a group of banks on an alternating basis
loan arrangement with a bank whereby secured and unsecured loans are alternately used

4-Which one of the following types of ratios indicates the ability to meet short-term obligations to creditors as they come due? Answer liquidity ratios asset management ratios capital structure ratios profitability ratios market value ratios

5-The extent to which assets are financed by borrowed funds and other liabilities is indicated by: Answer liquidity ratios asset utilization ratios financial leverage ratios profitability ratios 1-Which of the following is not used in the weighted average cost of capital equation? 1-Which of the following is not used in the weighted average cost of capital equation? cost of retained earnings weight of debt corporate income tax rate marginal tax rate

2-Of the components shown below, which is least likely to be of value in calculating the cost of preferred stock? Answer flotation costs per share book value of a preferred share dividends per share initial market price per share

3-A revolving credit agreement is a: Answer banker%u2019s agreement to extend the maturity of a loan banker%u2019s standby agreement to provide a guaranteed line of credit for a specified period of time large loan supported by a group of banks on an alternating basis
loan arrangement with a bank whereby secured and unsecured loans are alternately used

4-Which one of the following types of ratios indicates the ability to meet short-term obligations to creditors as they come due? Answer liquidity ratios asset management ratios capital structure ratios profitability ratios market value ratios

5-The extent to which assets are financed by borrowed funds and other liabilities is indicated by: Answer liquidity ratios asset utilization ratios financial leverage ratios profitability ratios 2-Of the components shown below, which is least likely to be of value in calculating the cost of preferred stock? 2-Of the components shown below, which is least likely to be of value in calculating the cost of preferred stock? flotation costs per share book value of a preferred share dividends per share initial market price per share

3-A revolving credit agreement is a: Answer banker%u2019s agreement to extend the maturity of a loan banker%u2019s standby agreement to provide a guaranteed line of credit for a specified period of time large loan supported by a group of banks on an alternating basis
loan arrangement with a bank whereby secured and unsecured loans are alternately used

4-Which one of the following types of ratios indicates the ability to meet short-term obligations to creditors as they come due? Answer liquidity ratios asset management ratios capital structure ratios profitability ratios market value ratios

5-The extent to which assets are financed by borrowed funds and other liabilities is indicated by: Answer liquidity ratios asset utilization ratios financial leverage ratios profitability ratios 3-A revolving credit agreement is a: 3-A revolving credit agreement is a: banker%u2019s agreement to extend the maturity of a loan banker%u2019s standby agreement to provide a guaranteed line of credit for a specified period of time large loan supported by a group of banks on an alternating basis loan arrangement with a bank whereby secured and unsecured loans are alternately used

4-Which one of the following types of ratios indicates the ability to meet short-term obligations to creditors as they come due? Answer liquidity ratios asset management ratios capital structure ratios profitability ratios market value ratios

5-The extent to which assets are financed by borrowed funds and other liabilities is indicated by: Answer liquidity ratios asset utilization ratios financial leverage ratios profitability ratios 4-Which one of the following types of ratios indicates the ability to meet short-term obligations to creditors as they come due? 4-Which one of the following types of ratios indicates the ability to meet short-term obligations to creditors as they come due? liquidity ratios asset management ratios capital structure ratios profitability ratios market value ratios

5-The extent to which assets are financed by borrowed funds and other liabilities is indicated by: Answer liquidity ratios asset utilization ratios financial leverage ratios profitability ratios 5-The extent to which assets are financed by borrowed funds and other liabilities is indicated by: 5-The extent to which assets are financed by borrowed funds and other liabilities is indicated by: liquidity ratios asset utilization ratios financial leverage ratios profitability ratios cost of retained earnings weight of debt corporate income tax rate marginal tax rate

2-Of the components shown below, which is least likely to be of value in calculating the cost of preferred stock? Answer flotation costs per share book value of a preferred share dividends per share initial market price per share

3-A revolving credit agreement is a: Answer banker%u2019s agreement to extend the maturity of a loan banker%u2019s standby agreement to provide a guaranteed line of credit for a specified period of time large loan supported by a group of banks on an alternating basis
loan arrangement with a bank whereby secured and unsecured loans are alternately used

4-Which one of the following types of ratios indicates the ability to meet short-term obligations to creditors as they come due? Answer liquidity ratios asset management ratios capital structure ratios profitability ratios market value ratios

5-The extent to which assets are financed by borrowed funds and other liabilities is indicated by: Answer liquidity ratios asset utilization ratios financial leverage ratios profitability ratios

Explanation / Answer

1)corporate income tax

2)book value of a preferred share

3)a banker stanby agreement to provide

a guaranteed line of credit for a specific period of time

4)asset managemnt ratio

5)financial leverage ratios