Quiz Ch 14 – Considerations in Calculating a Firm’s Cost of Capital
Fundamentals of Corporate Finance
Ross, Westerfield, and Jordan
13th Edition
What factors should be included in determining a firm’s cost of capital?
What factors should be included in determining a firm’s cost of capital?
Which statement accurately reflects considerations in evaluating capital projects?
How is a firm’s cost of equity affected by a debt-equity ratio of 0.48?
How is a firm’s cost of equity affected by a debt-equity ratio of 0.36?
Davidson Interiors declared a dividend payable on Monday, November 2, to holders of record on Thursday, October 15. Suenette purchased 200 shares on Monday, October 12, while Jake purchased 100 shares on the following day. Based on this information, which statement accurately describes their eligibility to receive the dividend?
Davis Engineering announced a dividend payable on Friday, February 26, to shareholders of record on Monday, February 8. Dividend checks typically arrive three business days after being written. Based on this, when should Carla anticipate receiving her dividend check? Assume a 365-day year.
Which best describes a regular cash dividend?
On which specific date is the decision made regarding which shareholders will receive a dividend payment?
What factors should be considered when determining the appropriate discount rate for a capital project proposal?
In relation to Alpha stock, considering Tuesday, December 1, as the ex-dividend date, which date represents the record date? Assume no banking holidays occur.