A. Rise in marginal cost of capital
B. Fall in marginal cost of capital
C. Rise in transaction cost of capital
D. Rise in transaction cost of capital
Correct Answer: Rise in marginal cost of capital ✔
Last Updated: July 03, 2022
Related MCQs
- Standard deviation is 18% and expected return is 15.5% then coefficient of variation would be__________?
- According to Black Scholes model, stocks with call option pays the__________?
- A formula of after-tax component cost of debt is__________?
- A type of beta which incorporates about company such as changes in capital structure is classified as__________?
- Cost of capital is equal to required return rate on equity in case if investors are only__________?
- Cost of common stock is 16% and bond yield is 9% then bond risk premium would be_________?
- Cost which has occurred already and not affected by decisions is classified as__________?
- Project which is started by firm for increasing sales is classified as__________?
- Cash flows that should be considered for decision in hand are classified as__________?
- Redemption option which protects investors against rise in interest rate is considered as________?
- Bond which is offered below its face value is classified as__________?
- In capital budgeting, number of non-normal cash flows have internal rate of returns are__________?
- In capital budgeting, an internal rate of return of project is classified as its__________?
- An uncovered cost at start of year is divided by full cash flow during recovery year then added in prior years to full recovery for calculating__________?
- Return on assets = 6.7% and equity multiplier = 2.5% then return on equity will be __________?
- Low price for earnings ratio is result of__________?
- Long-term equity anticipation security is usually classified as__________?
- An option that gives investors right to sell a stock at predefined price is classified as__________?
- An increase in value of option leads to low present value of exercise cost only if it has__________?
- In financial planning, most high option price will lead to__________?
- An investor who writes stock call options in his own portfolio is classified as__________?
- An investor who buys shares and writes a call option on stock is classified as__________?
- Greater value of option, larger span of time value is usually results in__________?
- If current price increases from lower to higher then an__________?
- According to Black Scholes model, selling and buying of stock have_______?
- Movement of price or rise or fall of prices of options is classified as_________?
- Financial corporations which serve individual savers and commercial mortgage borrowers are classified as__________?
- Companies take savings as premium, invest in bonds and make payments to beneficiaries are classified as__________?
- Corporations such as Citigroup, American Express and Fidelity are classified as__________?
- A regulatory body which licenses brokers and oversees traders is classified as__________?
- Mutual fund allows investors to sale out their share during any normal trading hours is classified as__________?
- Step in initial public offering in which hired agents act on behalf of owners is classified as__________?
- Federal government tax revenues if it exceeds government spending then it is classified as__________?
- Financial security which is tax exempted and issues by state governments to individuals is classified as__________?
- All partners have limited liability in__________?
- Markets dealing with residential loans, industry real estate loans, agricultural loans and commercial loans are called__________?
- Type of financial security in which loans are secured by borrowers’ property is classified as__________?
- Type of financial securities that mature in less than a year are classified as__________?
- In financial markets, period of maturity more than five years of financial instruments is classified as__________?
- Rate of return which is asked by investors is classified as__________?
- Type of financial securities that matures in less than a year are classified as__________?
- Corporations that buy financial instruments with money accepted from savers are classified as__________?
- Markets which bring closer institutions needing funds and with surplus funds are classified as__________?
- Partners who are only liable for their own part of investment are considered as__________?
- Process of selling company stock at large to general public and get lending from banks is classified as an__________?
- Cost of money is affected by factors which includes__________?
- Condition in which company’s imports are more than its exports is classified as__________?
- Financial security kept by non-financial corporations is__________?
- Markets which deal with buying and selling of bonds, mortgages, notes and stocks are considered as__________?
- Financial security issued by banks operating outside U.S is classified as__________?
- Relevant information about stock market price if it is given, then this price is called__________?