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
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- The weights used in calculating the weighted average cost of capital should be based on ________. a book values b estimated future values c market valueshow was capital asset pricing model (CAPM) created? GIVE referenceIn computing the weighted average cost of capital (WACC), the Blank______ weights for debt and equity should be used. Multiple choice question. current target historical past
- Determining optimum capital structure is a. An investment decision b. A financing decision c. A dividend decision d. liquidity decisionCapital 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 capitalThe 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 RatioWhich 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 debtDefine the term capital rationing.
- Define each of the following terms:a. Weighted average cost of capital, WACCDividing quick assets by current liabilities is the calculation for the a.ratio of liabilities to stockholders' equity. b.acid-test ratio. c.current ratio. d.return on investment.How does the capital asset pricing model (CAPM) influence financial decisions regarding risk and return?
