What type of risk cannot be eliminated through diversification?

1 .A firm has achieved an average growth in dividends over the last five years of 10.5% per year. It is now widely believed that the long-run average annual dividend growth rate will be 9.16% per year. The firm’s current dividend yield is 4.8%.What is the firm’s cost of equity?

A 13.96% B 14.40% C 15.30% D 15.80%

题型: 单选题 提问时间: 2021-08-24

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2 .Which of the following statements concerning capital structure theory is correct?

A In the traditional view, there is a linear relationship between the cost of equity andfinancial risk B Modigliani and Miller said that, in the absence of tax, the cost of equity wouldremain constant C Pecking order theory does not suggest an optimal debt to equity ratio D Modigliani and Miller sai...

题型: 单选题 提问时间: 2021-08-24

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3 .Colt Co has an equity beta factor of 1.15 and an asset beta factor of 0.85. The risk-free rate ofreturn is 8.5% and the market return is estimated at 12.4%. The corporate tax rate is 25%.What is Colt’s cost of equity geared?

A 11.82% B 12.99% C 9.74% D 14.26%

题型: 单选题 提问时间: 2021-08-24

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4 .The risk-free rate of return is 3% and the market premium is 6.5%. A firm’s equity beta is 1.15 and asset beta 0.85.What will the firm’s cost of equity be if it redeems all outstanding debt?

A 7.0% B 10.5% C 8.5% D 6.0%

题型: 单选题 提问时间: 2021-08-24

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5 .A firm’s equity beta is 1.10 and its asset beta is 0.85. The market premium is 4.50% and the risk-free rate 3%What is the firm’s cost of equity geared?

A 7.95% B 4.65% C 6.83% D 4.28%

题型: 单选题 提问时间: 2021-08-24

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7 .The risk-free rate of return is 6% and the required return on a security with a beta factor of 1·2 is 15·6%.What is the required annual rate of return on the market portfolio?

A 11·52% B 13·00% C 14·00% D 17·52%

题型: 单选题 提问时间: 2021-08-24

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8 .The beta of company X’s shares is 1·6, the risk free rate is 5% and the required return on company X’s shares is 16·2%. Company Y is quoted in the same stock market, but its shares have a beta of 1·4.What is the required rate of return on company Y’s shares?

A 12·0% B 13·0% C 13·2% D 14·8%

题型: 单选题 提问时间: 2021-08-24

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9 .Which of the following measures business risk?

A Equity beta B Debt beta C Volatility of net income D Asset beta

题型: 单选题 提问时间: 2021-08-24

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10 .Which of the following are assumptions of the capital asset pricing model?(1) Linear relationship between risk and required return(2) Constant dividend growth rate(3) Perfect capital markets

A 2 only B 1 and 3 C 1, 2 and 3 D 2 and 3

题型: 单选题 提问时间: 2021-08-24

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