INTROBF-Topic 7

Which of the following is an equity financing?

• Term loan

• Debenture

• Treasury bond

• Retained profits

Equity financing that has a fixed rewards to the holder is

• ordinary share.

• preference share.

• bond.

• retained profit.

When a company needs funding, they can opt for all the following capital structure, EXCEPT:

• term loan.

• ordinary share.

• debenture.

• T-bond.

All of the following is the definition for cost of capital, EXCEPT:

• required rate of return.

• Minimum rate of acceptable to the business.

• Internal rate of return.

• weighted average cost of each type of capital (WACC).

The real owner of a business is

• ordinary shareholder.

• preference shareholder.

• debenture holder.