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