Homemade leverage is:
Financial management chapter 2
Quiz
•
Business
•
University
•
Medium
Ánh Hoàng
Used 2+ times
FREE Resource
26 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Homemade leverage is:
the incurrence of debt by a corporation in order to pay dividends to
shareholders
the exclusive use of debt to fund a corporate expansion project
the borrowing or lending of money by individual shareholders as a means of
adjusting their level of financial leverage
best defined as an increase in a firm's debt-equity ratio
the term used to describe the capital structure of a levered firm
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which one of the following states that the value of a firm is unrelated to the
firm's capital structure?
Capital Asset Pricing Model
M & M Proposition I
M& M Proposition II
Law of One Price
Efficient Markets Hypothesis
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which one of the following states that a firm's cost of equity capital is directly
and proportionally related to the firm's capital structure?
Capital Asset Pricing Model
M & M Proposition I
M & M Proposition II
Law of One Price
Efficient Markets Hypothesis
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which one of the following is the equity risk that is most related to the daily
operations of a firm?
market risk
systematic risk
extrinsic risk
business risk
financial risk
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which one of the following is the equity risk related to a firm's capital structure
policy?
market
systematic
extrinsic
business
financial
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Butter & Jelly reduced its taxes last year by $350 by increasing its interest
expense by $1,000. Which of the following terms is used to describe this tax
savings?
interest tax shield
interest credit
financing shield
current tax yield
tax-loss interest
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
The unlevered cost of capital refers to the cost of capital for a(n):
private entity
all-equity firm
governmental entity
private individual
corporate shareholder
27 questions
Chapter 10 Financing Strategy and Tactics Entrepreneurship IT
Quiz
•
University
26 questions
PA 13 - Statament of Cash Flows Quiz
Quiz
•
University
25 questions
Chapter 8 Entrepreneruship IT
Quiz
•
University
30 questions
Financial Management Function and Environment
Quiz
•
University
21 questions
Finance Quiz
Quiz
•
University
30 questions
Chapter 4 : Managing Investment
Quiz
•
University
25 questions
Corporate Duel Round 1 Quiz
Quiz
•
University
22 questions
Pm quiz l1
Quiz
•
University
25 questions
Equations of Circles
Quiz
•
10th - 11th Grade
30 questions
Week 5 Memory Builder 1 (Multiplication and Division Facts)
Quiz
•
9th Grade
33 questions
Unit 3 Summative - Summer School: Immune System
Quiz
•
10th Grade
10 questions
Writing and Identifying Ratios Practice
Quiz
•
5th - 6th Grade
36 questions
Prime and Composite Numbers
Quiz
•
5th Grade
14 questions
Exterior and Interior angles of Polygons
Quiz
•
8th Grade
37 questions
Camp Re-cap Week 1 (no regression)
Quiz
•
9th - 12th Grade
46 questions
Biology Semester 1 Review
Quiz
•
10th Grade