In order to calculate the proportion of equity financing used by the company, the following should be used:

Related MCQs

• 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:
• In calculating the proportional amount of equity financing employed by a firm, we should use:
• 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
• Financing a long-lived asset with short-term financing would be
• Which of the following forms of equity financing is especially designed for funding High Risk & High Reward projects?
• Rank in ascending order (i.e., 1 = lowest, while 3 = highest) the likely after-tax component costs of a Company's long-term financing.
• EVA= ___________ - (Equity capital x % of cost of equity capital
• The term optimal capital structure‘ implies that combination of external equity and internal equity at which ………
• 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)?
• ----- 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