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- The cost of equity is _______. A. the interest associated with debt B. the rate of return required by investors to incentivize them to invest in a company C. the weighted average cost of capital D. equal to the amount of asset turnoverThe cost of equity is ________. Group of answer choices A. the interest associated with debt B. the rate of return required by investors to incentivize them to invest in a company C. the weighted average cost of capital D. equal to the amount of asset turnoverThe cost of equity is ________. a.equal to the amount of asset turnover b.the interest associated with debt c.the weighted average cost of capital d.the rate of return required by investors to incentivize them to invest in a company
- Which of the following statements is true? I. The formula for the return on equity is: Return on equity = Net income ÷ Average total stockholders' equity. II. When computing the return on equity, retained earnings should be excluded from the average total stockholders' equity.Ratios: Which of the following ratios is not considered to be a test of profitability? Long-Term Debt to Total Capital Earnings Per Share Return On Assets Net Profit MarginAccording to the simplified Brennan Lally CAPM, what is the cost of equity for A Ltd? Using the cost of debt, cost of equity, market value of debt and market value of equity given in the table given, what is the weighted average cost of capital (WACC) for B Ltd? Thank you!
- Of the following metrics, which is most likely used in present value calculation of equity shares? Question options: Enterprise value Net assets Free cash flowThe term capital structure refers to_______ O a. Long-term debt, preferred stock, and common stock equity O b. Current assets and current liabilities O c. Shareholders' equity O d. Total assets minus liabilitiesNPAT Less prefernce dividend is used in O a. Return on Equity O b. Return on Equity share capital О с. Return on Capital Employed O d. Debt service ratio
- 1. Differentiate stocks from bonds; and stockholders from bondholders. 2. Explain the components of capital (retained earnings, bonds, preferred equity and common equity) relative to weighted average cost of capital. 3. What are the factors affecting cost of debt? Define or explain each of them.Calculation of which if the following metrics require knowledge of the company’s share price? Choose two A) return on equity B) dividend yield C) dividend payout ratio D) ratio of market-to-book value E) leverage ratioa. How does the return on total assets differ from the return on stockholders’ equity?b. Which ratio is normally higher? Why?