更多"An analyst does research about cost"的相关试题:
[单项选择]An analyst does research about cost of capital and gathers the following information about a company's preferred stock. The preferred stock is nonconvertible, noncallable, and has a fixed dividend rate with no maturity date :
·3 million shares outstanding
·The par value per share is $15
·Total market value is $39 million
·Earnings per share is $2.1
·Annual dividend per share is $0.8
·Company's marginal tax rate is 30%。
The cost of preferred stock is closest to:（）
A. 4.31%
B. 5.33%
C. 6.15%
[单项选择]An analyst does research about cost of capital. All else being equal, if a U. S. company's marginal tax rate decreases, the company's weighted average cost of capital will most likely:
A. decrease.
B. remain unchanged.
C. increase.
[单项选择]An analyst does research about the cost of capital and gathers the following information about a company:
·Current share price is $60
·Current annual dividend per share is $1.50
·Stable retention ratio is 40%
·Historical return on equity is 12%
Using the dividend discount model approach, the cost of equity is closest to:
A. 7.30%
B. 7.42%
C. 9.88%
[单项选择]An analyst does research about cost of common equity. With respect to calculating the cost of equity using the bond yield plus risk premium approach, which of the following statements about the risk premium is least accurate（）
A. The risk premium compensates for the additional risk of equity compared with debt.
B. We often estimate the risk premium using historical spreads between bond yields and stock yields.
C. In developed country markets, a typical risk premium added is in the range of 2 to 4 percent.
[单项选择]An analyst does research about opportunity cost and gathers the following information about three fixed income products available for the public:
| Fixed Income Product | Interest Rate |
| 1 | 3.3% |
| 2 | 4.4% |
|
| 3 | 6.6% |
If each fixed income product has the same maturity and default risk, the opportunity cost of investing in product 2 is closest to:（）
A. 0.0%
B. 1.1%
C. 2.2%
[单项选择]An analyst does research about capital budgeting and gathers the following information about two independent projects:
| NPV | IRR |
| Project 1 | $121200 | 16.7% |
| Project 2 | $919790 | 13.6% |
If there is no capital rationing and the company's cost of capital is 10.5%, the company should invest in:（）
A. Project 1.
B. Project 2.
C. both Project 1 and Project 2.
[单项选择]An analyst does research about capital structure and gathered the following information about a company:
·Return on assets is 5.0%
·Financial leverage (Total assets/equity) is 2.5
·Beta for the company's stock is 1.5
If the company wants to achieve a growth rate of 10% without changing its capital structure or issuing new equity, the maximum dividend payout ratio for the company would be closest to:
A. 10.0%
B. 12.5%
C. 20.0%
[单项选择]An analyst does research about capital structure. Which of the following is the least appropriate method to estimate the capital structure weights when a company's target capital structure is unknown to analysis
A. Using the book value of capital components.
B. Using industry average capital components.
C. Analyzing trends in capital components to infer the target capital structure.
[单项选择]An analyst does research about capital asset pricing model approach and gathers the following information about a company and the market:
| Equity beta | 1.5 |
| Equity risk premium | 15% |
| Risk-free rate | 3% |
| Before-tax cost of company's debt | 9% |
Using the capital asset pricing model approach, the company's cost of equity capital is closest to:（）
A. 18.0%
B. 21.0%
C. 25.5%
[单项选择]An analyst does research about capital market line (CML). According to capital market theory, if an investor holds a portfolio that lies on the capital market line to the left of the market portfolio, that investor should expect that his portfolio will:（）
A. eam less than the return on the market portfolio.
B. earn more than the return on the market portfolio.
C. haveless unsystematic risk than the market portfolio.
[单项选择]An analyst does research about capital budgeting. A company that has a weighted average cost of capital of 17 percent is considering an independent capital project that has the same risk as the company, an estimated internal rate of return of 19 percent and cash inflows that are expected at equal intervals over the life of the project. If the project is accepted, cash flows associated with the project are received as expected, and the company's weighted average cost of capital remains unchanged over the life of the project, the actual rate of return earned by the project is most likely to be:（）
A. less than 19%.
B. more than 19%.
C. equal to 19%, because the actual cash flows equal the expected cash flows.
