These are the homework questions for Chapter 12 in Corporate Finance.
Weighted average cost of capital
Pure play cost
Cost of equity
Subjective cost
Cost of debt
Pure play cost.
Cost of debt.
Weighted average cost of capital.
Subjective cost.
Cost of equity.
Return on its investments.
Cost of equity and its aftertax cost of debt.
Pretax cost of debt and equity securities.
Bond coupon rates.
Dividend and capital gains yields.
Produces a return that will be less than the market rate but higher than the risk-free rate
Equals the market rate of return for all stocks
Has a maximum cost equal to the market rate of return
Decreases as the beta of the firm's stock increases
Increases in direct relation to the stock's systematic risk
Average coupon rate on the firm's outstanding bonds
Coupon rate on the firm's latest bond issue
Weighted average yield-to-maturity on the firm's outstanding debt
Average current yield on the firm's outstanding debt
Annual interest divided by the market price per bond for the latest bond issue
Increases when a firm's tax rate decreases.
Is constant over time.
Is unaffected by changes in the market price.
Is equal to the stock's dividend yield.
Increases as the price of the stock decreases.
Cost of equity
Internal rate of return
Aftertax cost of debt
Weighted average cost of capital
Debt-equity ratio
Life of investment
Initial cash outlay
Level of risk
Source of funds used for the investment
Investment's net present value