2924363
Question 1
Question
Assume a given cost of equity, how will this typically compare to the cost of dept?
Answer
-
Cost of equity is higher
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Cost of equity is dropping
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Cost of debt is higher
Question 2
Question
The lower the beta of a company, the higher its cost of equity?
Answer
-
Wrong
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Right
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Irrelevant
Question 3
Question
Under what condition is the leverage effect useful to increase the return of equity of a projekt?
Answer
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Cost of debt < ROI
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Cost of debt > ROI
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Stable ROI
Question 4
Question
When the WACC of a company goes up, what happens to its NPV?
Answer
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Going down
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Going up
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It depents
Question 5
Question
Increasing the share of equity in a company's capital structure will typically have what effect on its WACC?
Answer
-
WACC goes up
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WACC goes down
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Irrelevant
Question 6
Question
When defining the FCFs for a DCF analysis, which of the following should best reflect reality in order to provide meaningful information?
Answer
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Terminal value
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Year 1
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Year 4+5
Question 7
Question
When a company enjoys growth in its terminal value, how does that compare to no-growth scenario?
Answer
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Higher terminal value
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Lower terminal value
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Same terminal value
Question 8
Question
The NPV of a given projects is EUR = 234M, what is the useful economic prive for investing into this project?
Answer
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Receiving EUR 234
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0
Question 9
Question
Which of the following reasons does not characterise the difference between static and dynamic investment analysis?
Answer
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Leverage
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Aveanging time periodes
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Time value of money
Question 10
Question
How does the currently historically low interest rate impact industrial companies?
Answer
-
Increase enterprise value
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Reduce enterprise value
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Industry not affected...
Question 11
Question
When the market return is 15% p.a. and a company has a beta of 1,4 what ROE would you expect for this company?
Answer
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> 15%
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15%
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< 15%
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