The bond risk premium is added in to bond yield to calculate Options: A . &nbspcost of American option B . &nbspcost of European option C . &nbspcost of common stock D . &nbspcost of preferred stock

The bond risk premium is added in to bond yield to calculate

Question

The bond risk premium is added in to bond yield to calculate

Options:

A . cost of American option

B . cost of European option

C . cost of common stock

D . cost of preferred stock

Answer: Option C
Answer: (c).cost of common stock

Was this answer helpful ?

Next Question

Question 1. For each component of capital, a required rate of return is considered as....

Question 2. The stock selling price is $35, expected dividend is $5 and expected growth rate is 8% then cost of common stock would b....rate is 8% then cost of common stock would be

Question 3. The preferred dividend is divided by preferred stock price multiply by (1-floatation cost) is used to calculate....

Question 4. If the payout ratio is 0.45 then the retention ratio will be....

Question 5. The retention ratio is 0.55 and the return on equity is 12.5% then the growth retention model would be....

Question 6. The stock selling price is $65, expected dividend is $20 and cost of common stock is 42% then expected growth rate will ....common stock is 42% then expected growth rate will be

Question 7. In weighted average cost of capital, the rising in interest rate leads to....

Question 8. In retention growth model, the percent of net income firms usually pay out as shareholders dividends, is classified as....

Question 9. The cost of new debt or marginal debt is also classified as....

Question 10. The bond risk premium is 3% and the bond yield is 10.2% then the cost of common stock will be....

Chapter 1 - GLOBAL STEEL SCENARIO & INDIAN STEEL INDUSTRY Part 1 : (13-04-2024) INDUSTRY AND COMPANY AWARENESS (ICA)

Direction Sense Test Part 1 Reasoning (Hindi)

Chapter 1 - RMHP / OHP / OB & BP Part 1 : (14-02-2024) GPOE

Cube & Cuboid Part 1 Reasoning (Hindi)

Data Interpretation (DI) Basic Concept Reasoning (Hindi)

Counting Figures Part 1 Counting Of Straight Lines Reasoning (Hindi)

Sail E0 free webinar Webinars

Real Numbers Part 7 Class 10 Maths

Real Numbers Part 1 Class 10 Maths

Polynomials Part 1 Class 10 Maths

Pie Chart - Test Paper 1 Data Interpretation Reasoning & DI

Tabulation - Test Paper 2 Data Interpretation Reasoning & DI

Test Paper 1 Direction Sense Test Reasoning & DI

ICA , RDIC,GFM Free Modal Test Paper - Non - Technical Branch Old Syllabus 2022 - SAIL Junior Officer E0

GFM Combined 1 Free Revision Test SAIL JO E-0