SU MBA6010 Week 3 Knowledge Check Latest 2019 JUNE

MBA6010 Managerial Finance

Week 3 Knowledge Check

Question 1 The before tax cost of debt is used to calculate the WACC.

Question 1 options:

True

False

Question 2 The two sources of equity capital are debt and preferred stock.

Question 2 options:

True

False

Question 3 Market risk on a project is measured by its effect on the beta coefficient.

Question 3 options:

True

False

Question 4 The cost of common equity is the rate of return by the firm’s stockholders.

Question 4 options:

True

False

Question 5 The best proxy for the risk free rate of return is the rate on Treasury bonds.

Question 5 options:

True

False