Quiz Ch 12 – Factors Impacting Cost of Equity
Essentials of Corporate Finance
Ross, Westerfield, and Jordan
10th Edition
Considering all else held constant, which of the following factors will increase the cost of equity?
Considering all else held constant, which of the following factors will increase the cost of equity?
Which factor influences the capital structure weights used in computing a firm’s weighted average cost of capital (WACC)?
What factor is most likely to lead a wise manager to increase the cost of capital for a project in a levered firm?
What is the term that describes the evaluation approach used by Farmer’s Supply to determine the discount rate for assessing the proposed clothing store expansion?
What was the average risk premium on large-company stocks for the period 1926-2019?
When estimating the rate of return on a security, historical arithmetic averages are likely to ______ the expected return for the long-term, while historical geometric averages are likely to ______ the expected return for the short-term.
Which is true based on the historical record for 1926–2019?
Based on the historical record for the period 1926-2019, which of the following statements is supported?
Which statement is correct for the period 1926-2019?
When applying the pure play approach to assign a cost of capital to a proposed investment, which characteristic should be given the most focus when searching for an appropriate pure play firm?