A company should arrange the capital structure in such a way that there is maximum flexibility in the capital and cost of capital is

Related MCQs

• A company can increase its value and reduce the overall cost of capital by increasing the proportion of debt in its capital structure according to ----- approach
• In optimal capital structure the company’s cost of capital will be
• According to MM approach, two identical firms in all respects except their capital structure can not have different market values or cost of capital because of-----
• According to which theory two identical firms in all respect except their capital structure can not have different market value or cost of capital because of arbitrage process
• Lei-Feng, Inc.'s $100 par value preferred stock just paid its $10 per share annual dividend. The preferred stock has a current market price of $96 a share. The firm's marginal tax rate (combined federal and state) is 40 percent, and the firm plans to maintain its current capital structure relationship into the future. The component cost of preferred stock to Lei-Feng, Inc. would be closest to .
• 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 term _______means manipulation of accounts in a way so as to conceal vital facts and present the financial statements in a way to show a better position than what it actually is.
• Marginal cost of capital is the cost of:
• Firm's Cost of Capital is the average cost of:
• Cost of Equity Share Capital is more than cost of debt because: