Marginal cost of capital is the cost of:

Related MCQs

• A company should arrange the capital structure in such a way that there is maximum flexibility in the capital and cost of capital is
• 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 .
• EVA= ___________ - (Equity capital x % of cost of equity capital
• Cost Capital for Equity Share Capital does not imply that:
• 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-----
• In optimal capital structure the company’s cost of capital will be
• 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
• 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
• 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)?
• Firm's Cost of Capital is the average cost of: