----- is the rate of return that the company must earn on the net funds raised, in order to satisfy the equity shareholders’ demand for return

Related MCQs

• Minimum Rate of Return that a firm must earn in order to satisfy its investors, is also known as:
• Consider the below mentioned statements: 1. A debt-equity ratio of 2:1 indicates that for every 1 unit of equity, the company can raise 2 units of debt. 2. The cost of floating a debt is greater than the cost of floating an equity issue. State True or False:
• The cost of capital is the rate of return of a company must earn on investment to maintain ----------------
• If the weighting of equity in total capital is 1/3, that of debt is 2/3, the return on equity is 15% that of debt is 10% and the corporate tax rate is 32%, what is the Weighted Average Cost of Capital (WACC)?
• Which helps in deciding whether funds should be raised by internal equity or by borrowings>
• Equity shares of phonex Ltd are quoted in the market at Rs17. The dividend expected a year hence is Rs1.50. The expected rate of dividend growth is 8%. The cost of equity capital to the company is
• Which of the following helps analysing return to equity Shareholders?
• If risk free rate of return is 8%, Return on market portfolio is 12%, beta = 1.5, then the expected rate of return according to CAPM is equal to
• The capital raised through equity share is ---------- for the company
• Preferred shareholders' claims on assets and income of a firm come those of creditors those of common shareholders.