_____________ enhance the market value of shares and therefore equity capital is not free of cost.

Related MCQs

• 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
• 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:
• When preference shareholders have a right to convert their preference shares in to equity shares after a pre-decided dare such shares are called -------- shares.
• 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)?
• EVA= ___________ - (Equity capital x % of cost of equity capital
• Cost Capital for Equity Share Capital does not imply that:
• 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
• The term optimal capital structure‘ implies that combination of external equity and internal equity at which ………
• Cost of Equity Share Capital is more than cost of debt because:
• The use of long term fixed interest bearing debt and preference share capital along with equity shares is called