Rate of return which is required to satisfy stockholders and debt holders is classified as__________?

A: Weighted average cost of interest

B: Weighted average cost of capital

C: Weighted average salvage value

D: Mean cost of capital

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Weighted average cost of capital

In cash flow estimation, depreciation is considered as________________?

A: Cash charge

B: Non cash charge

C: Cash flow discounts

D: Net salvage discount

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Non cash charge

Net investment in operating capital is subtracted from net operating profit after taxes to calculate___________?

A: Relevant inflows

B: Free cash flow

C: Relevant outflows

D: Cash outlay

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Free cash flow

Type of bond in which payments are made on basis of inflation index is classified as_____________?

A: Borrowed bond

B: Purchasing power bond

C: Surplus bond

D: Deficit bond

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Purchasing power bond

Method uses for an estimation of cost of equity is classified as___________?

A: Market cash flow

B: Future cash flow method

C: Discounted cash flow method

D: Present cash flow method

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Discounted cash flow method

Variability for expected returns for projects is classified as___________?

A: Expected risk

B: Stand-alone risk

C: Variable risk

D: Returning risk

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Stand-alone risk

A risk associated with project and way considered by well diversified stockholder is classified as______________?

A: Expected risk

B: Beta risk

C: Industry risk

D: Returning risk

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Beta risk

During planning period, a marginal cost for raising a new debt is classified as__________?

A: Debt cost

B: Relevant cost

C: Borrowing cost

D: Embedded cost

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Relevant cost

If coupon rate is more than going rate of interest, then bond will be sold________?

A: More than its par value

B: Seasoned par value

C: At par value

D: Below its par value

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Below its par value

A markets which deals with long-term corporate stocks are classified as

A: Liquid markets

B: Short-term markets

C: Capital markets

D: Money markets

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Capital markets

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