Sail E0 Webinar

MCQs

Total Questions : 53 | Page 4 of 6 pages
Question 31. The interest rate is 12% and the tax savings (1-0.40) then the after-tax component cost of debt will be
  1.    0.072
  2.    7.2 times
  3.    17.14 times
  4.    17.14
 Discuss Question
Answer: Option A. -> 0.072
Answer: (a).0.072
Question 32. The cost of capital is equal to required return rate on equity in the case if investors are only
  1.    valuation manager
  2.    common stockholders
  3.    asset seller
  4.    equity dealer
 Discuss Question
Answer: Option B. -> common stockholders
Answer: (b).common stockholders
Question 33. If the future return on common stock is 14% and the rate on T-bonds is 5% then the current market risk premium will be
  1.    0.19
  2.    0.09
  3.    9
  4.    19
 Discuss Question
Answer: Option B. -> 0.09
Answer: (b).0.09
Question 34. The retention ratio is 0.60 and the return on equity is 15.5% then the growth retention model would be
  1.    0.149
  2.    0.2584
  3.    0.161
  4.    0.093
 Discuss Question
Answer: Option D. -> 0.093
Answer: (d).0.093
Question 35. An attempt to make correction by adjusting historical beta to make it closer to an average beta is classified as
  1.    adjusted stock
  2.    adjusted beta
  3.    adjusted coefficient
  4.    adjusted risk
 Discuss Question
Answer: Option B. -> adjusted beta
Answer: (b).adjusted beta
Question 36. The method uses for an estimation of cost of equity is classified as
  1.    market cash flow
  2.    future cash flow method
  3.    discounted cash flow method
  4.    present cash flow method
 Discuss Question
Answer: Option C. -> discounted cash flow method
Answer: (c).discounted cash flow method
Question 37. The method in which company finds other companies considered in same line of business to evaluate divisions is classified as
  1.    pure play method
  2.    same play method
  3.    division line method
  4.    single product method
 Discuss Question
Answer: Option A. -> pure play method
Answer: (a).pure play method
Question 38. The bond risk premium is added in to bond yield to calculate
  1.    cost of American option
  2.    cost of European option
  3.    cost of common stock
  4.    cost of preferred stock
 Discuss Question
Answer: Option C. -> cost of common stock
Answer: (c).cost of common stock
Question 39. For each component of capital, a required rate of return is considered as
  1.    component cost
  2.    evaluating cost
  3.    asset cost
  4.    asset depreciation value
 Discuss Question
Answer: Option A. -> component cost
Answer: (a).component cost
Question 40. The stock selling price is $35, expected dividend is $5 and expected growth rate is 8% then cost of common stock would be
  1.    40
  2.    0.2229
  3.    0.1428
  4.    80
 Discuss Question
Answer: Option B. -> 0.2229
Answer: (b).0.2229

Latest Videos
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

Latest Test Papers

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