İŞLETME FİNANSI II

... is a benchmark rate that represents the interest rate at which banks offer to lend funds to one another in the international interbank market for short-term loans.

If a company borrows 250.000 tl as a bank loan at an annual interest rate % 8. The company pays % 25 corporate tax rate. What will be the after-tax rate of borrowing for this company.

... is the return a company requires to decide if an investment meets capital return requirements.

Which one of the following completes the sentence?

Which one of the following estimates the required return of a stock investment in relation to its systematic risk which cannot be diversified away in a portfolio context?

A corporation has a bond issue outstanding for which the yield-to-maturity is % 6.75. Analysts estimate a risk premium of % 4.80 of the company's stock. What is the expected cost of equity of this corporation?

Which one of the following provides a practical but highly subjective solution to the estimation of the cost of equity?

... is an average value of the interest rate which is calculated from estimates submitted by the leading global banks on a daily basis.

Which one of the following completes the sentence?

Which one of the following is the uncertainty inherent to the entire market or entire market segment?

Which one of the following is the composite cost of the last dollar of new capital raised?

Which one of the following is a ratio measuring the profitability on equity capital and it is the division of the net income by the total common equity?

XYZ Corp. has a historical beta of 0.9 and the expected market return is 8%, whereas the risk-free rate is 2%. What is the required return of the stockholders of XYZ?

Which of the following is the measure of sytematic risk of a stock?

The return of the market in excess of the risk-free rate is referred to as .............

According to the Dividend Growth Model, the cost of equity reflects ..........

XYZ Corp. borrows $100,000 as a bank loan at an annual interest rate of 5%. The company pays 30% corporate tax rate. What is the after-tax rate of borrowing for XYZ Corp.?

Cost of capital depends on the following factors except for ...........

XYZ Corp. distributes 50% of its net income as dividends. The firm’s ROE is 20% and last year stockholders received $1 dividends per share. Currently the stock sells at $20. What is the cost of equity for XYZ Corp?

ABC Corp. has the following optimal capital structure:
Long-term Debt 50%
Preferred Stocks 10%
Common Equity 40%
The interest rate on the company’s long-term borrowings is 10%. Preferred stockholders require 12% return on their investments and common shareholders are paid 17% on equity capital. The company has a tax rate of 30%. What is the WACC for ABC Corp.?

ABC Corp. has a bond issue outstanding for which the yield-to-maturity is 10%. Analysts estimate a risk premium of 4% for the company’s stock. ABC's beta is 1.5. What is the expected cost of equity of ABC Corp.?

XYZ Corp. distributes 70% of its net income as dividends. The firm’s ROE is 20% What is the expected growth rate?