|
Erstellt von dylan_earl
vor mehr als 9 Jahre
|
|
Frage | Antworten |
Define Capital Structure | Firms mix of long financing (debt and equity) |
Define Cost of Capital | Return the firms investors could expect to earn if they invested in securities |
What is the WACC | Average of returns on debt and equity with weights depending on relative market values |
Why use market values not book values | Book values are issued, market values are real |
Is debt interest tax deductible T/F | True Ya it is |
How to calculate Market Value | Market value of a company's bonds is the PV of all coupons and par value discounted at current int rate |
Financial Managers use Yield to Maturity on the bond as expected return T/F | True |
Formula for Expected Return on Preferred Stock | rpreferred = Dividend / Price preferred |
What are flotation costs | Implementing financing decisions when evaluating projects |
Define Horizon Value | Value at a specified time |
Do floatation costs affect WACC | No. They are treated as a negative cash flow in the NPV Calculation |
Möchten Sie mit GoConqr kostenlos Ihre eigenen Karteikarten erstellen? Mehr erfahren.