In case of Net Income Approach, the Cost of equity is:

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 case of Net Income Approach, when the debt proportion is increased, the cost of debt:
• EVA= ___________ - (Equity capital x % of cost of equity capital
• 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
• 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)?
• Ratio of Net Income to Number of Equity Shares known as:
• Which of the following is not a generally accepted approach for Calculation of Cost of Equity?
• 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:
• Which of the following is true of Net Income Approach?