The optimal capital structure has been achieved when the:   Multiple Choice   cost of equity is maximized given a pretax cost of debt.   debt-equity ratio results in the lowest possible weighted average cost of capital.   debt-equity ratio is such that the cost of debt exceeds the cost of equity.   weight of equity is equal to the weight of debt.   debt-equity ratio is equal to 1.

One should determine the after-tax weighted average cost of capital by   Multiple Choice A) dividing the weighted average before-tax cost of debt to the weighted average cost of equity.  B) adding the weighted average before-tax cost of debt to the weighted average cost of equity.  C) adding the weighted average after-tax cost of debt to the weighted average cost of equity.  D) multiplying the weighted average after-tax cost of debt by the weighted average cost of equity.

Which one of the following statements is accurate according to M&M Proposition II, without taxes?   Multiple Choice   Financial risk determines the return on assets.   The required return on assets is equal to the weighted average cost of capital.   Financial risk is unaffected by the debt-equity ratio.   The cost of equity remains constant as the debt-equity ratio increases.   The cost of equity is inversely related to the debt-equity ratio.

In determining the optimal weighted average cost of capital, an MNC can never have too much debt. Group of answer choices True False

Which of the following best represents the relationship between the weighted average cost of capital (WACC) and the minimum attractive rate of return (MARR)? a. WACC and MARR are unrelated b. WACC is a lower bound for MARR c. WACC is an upper bound for MARR d. MARR ≤ WACC.

Ch. 17. True/False. The optimal amount of debt produces the highest weighted average cost of capital. Group of answer choices True False

The economic value added (EVA) is a performance measure based on the Blank______. Multiple choice question. risk-free rate weighted average cost of capital cost of equity expected return

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.

A firm's overall cost of financing is equal to: I. Its weighted-average cost of capitalII. The required rate of return of its capital providersIII. The returns being generated by investments Select one: A. I only B. I and II only C. I and III only D. I, II, and III

While computing the weighted average cost of capital, the   is the better alternative when the market value is not readily available.