In Finance, The capital asset pricing model (CAPM) is used to calculate the: A. Cost of debt B. Cost of equity C. Cost of capital D. Dividend payout ratio

Determining optimum capital structure is a. An investment decision b. A financing decision c. A dividend decision d. liquidity decision

Capital gearing ratio indicates the relationship between A. assets and capital B. loans and capital C. equity shareholders fund and long term borrowed funds D. debentures and share capital

The capital asset pricing model expresses the cost of equity as a function of a return on riskless assets, a market premium, and: Select one:a. Unsystematic risk.b. None of these.c. The cost of debt.d. Systematic risk.

In a DuPont analysis, what are the components of return on assets?a. Net Profit Margin Ratio and Debt Ratiob. Net Profit Margin Ratio and Leverage Ratioc. Net Profit Margin Ratio and Asset Turnover Ratiod. Asset Turnover Ratio and Leverage Ratio

Define Capital Market Line (CML)

Total debt-to-assets ratio, debt-to-equity ratio and Long-term debt-to-capital ratio are examples of what type or category of ratios? a. Activity O b. Profitability O c. Liquidity O d. Leverage

Which of the following is generally excluded in estimating the weighted average cost of capital? c. Preferred Share d. Ordinary Equity a. Short-term debt b. Long-term debt

Define the term capital rationing.

Define each of the following terms:a. Weighted average cost of capital, WACC