Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Cost Accounting Expert

problem1: Which one of the following statements is correct concerning capital structure weights?

[A] An increase in the debt-equity ratio will increase the weight of the common stock

[B] the repurchase of preferred stock will not affect the weight of the debt

[C] capital structure weights are constant over time

[D] a new bond issue will not affect the weight of the firm's preferred stock

[E] the issuance of additional shares of common stock will decrease the weight of the preferred stock

problem2: All else constant, which of the following will increase the aftertax cost of debt for a firm?

increase in the yield to maturity of the firm's outstanding debt 

decrease in the yield to maturity of the firm's outstanding debt

increase in the firm's tax rate

decrease in the firm's tax rate

[A] I only

[B] I and III only

[C] I and IV only

[D] II and III only

[E] II and IV only

problem3: All else constant, an increase in a firm's cost of debt:

[A] Will lower the firm's weighted average cost of capital

[B] Will lower the firm's cost of equity

[C] Could be caused by an increase in the firm's tax rate

[D] Will result in an increase in the firm's cost of capital

[E] Will increase the firm's capital structure weight of debt

problem4: A company's weighted average cost of capital:

[A] varies inversely with the firm's pretax cost of debt

[B] is the required return on the existing assets of the firm

[C] decreases when the firm's tax rate decreases

[D] is another terms for the firm's return on equity

[E] is the required return for each of the firm's proposed projects

problem5: All else constant, the weighted average cost of capital for a firm will decrease if:

[A] the firm replaces some of its debt with preferred stock

[B] corporate taxes are eliminated

[C] a firm's bonds start selling at a premium rather at a discount

[D] the market risk premium increases

[E] the dividend yield on the common stock increases

Cost Accounting, Accounting

  • Category:- Cost Accounting
  • Reference No.:- M923175

Have any Question? 


Related Questions in Cost Accounting

The budgeted and actual revenues and expenditures of

The budgeted and actual revenues and expenditures of Seaside Township for a recent year (in millions) were as presented in the schedule that follows:  1. Prepare journal entries to record the budget. 2. Prepare journal e ...

Exercise assume that schipper company has the same data as

Exercise : Assume that Schipper Company has the same data as before, but that Schipper Company now pays a marginal tax rate of 40 percent. Required 1. What is the after-tax cost of the mortgage bonds? 2. What is the afte ...

Cost of capitalthe intent of this assignment is to

Cost of Capital The intent of this assignment is to demonstrate proficiency in determining the costs of capital for the firm. It is a comprehensive problem in that you first need to determine the cost of each source of c ...

Module cost of capital worksheetthe assignment in this

Module Cost of Capital Worksheet The assignment in this module builds on the idea of forecasting and valuation theory from Chapters 6 and 7 in Module Six by valuing a company through calculations using real data. This wi ...

Cool ride skis ltd case studyit is the end of 2015 and

COOL RIDE SKIS LTD CASE STUDY It is the end of 2015 and Grace Miller, senior management accountant for Cool Ride Skis Ltd has been analysing the Victorian division's 2015 results. Both she and the company's Managing Dire ...

Problem 1triglassplc has three types of capital the market

Problem 1 TriglassPlc has three types of capital. The market capitalization of its equity is $20 million. These ordinary shares have a beta of 0.9, as measure over the past five years of monthly returns which may be take ...

Abc costing1 assume you own a business that makes two

ABC COSTING 1. Assume you own a business that makes two complementary products for which you allocated manufacturing overhead proportionally. A competitor is trying to undercut your price for one of the products. How mig ...

Nbspquestions1 can marginal product be zero or negative2

Questions: 1. Can Marginal Product be Zero or negative? 2. What would be Marginal Cost if cost of producing 4 units is '50 and that of 5 units is '68? 3. Is the difference between ATC and AVC is constant? Give reason whe ...

Question1 which of the following statements concerning job

Question 1. Which of the following statements concerning job costing systems is incorrect? a. Cost drivers are those items which cause actual overhead to exceed applied overhead. b. Job costing systems are appropriate to ...

1 avatar company uses the indirect method to prepare its

1) Avatar Company uses the indirect method to prepare its statement of cash flows. Please refer to the following portion of the comparative balance sheet:   2014 2013 Increase/decrease Cash $  21,000 $  18,000  $  3,000 ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate