The appropriate risk-free rate to use when calculating the cost of equity for a
ID: 2726679 • Letter: T
Question
The appropriate risk-free rate to use when calculating the cost of equity for a firm is a long-term Treasury rate a short-term Treasury rate. a 50/50 mix of short-term and long-term Treasury rates none of the above. The three principal ways in which venture capital firms exit venturc-baeked companies. are selling to a strategic buyer, buying out the founder, and offering stock to the public selling to a strategic buyer, setting to a financial buyer, and buying out the founder selling to a strategic buyer, setting to a financial buyer and offering stock to the public None of the above. A firm's capital structure is the mix of finance securities used to finance its activities and can include all of the following except stock. bonds. 4 equity options. preferred stock. Long-term debt typically describes debt with a maturity greater than one year. only coupon debt. publicly traded debt. none of the above.Explanation / Answer
1) Answer is :- C) a 50/50 mix of short term and long term treasury rates
2) Answer is :- A)
3) Answer is :- C) Equity option
4) Answer is :- A) Debt with a maturity greater than one year
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