QUESTION: 81

A company is evaluating a project. What is the appropriate discount rate that it should use if its marginal tax rate is 34%, its capital structure is 40% common equity, and 60% debt. Its cost of equity is 10%, and its average cost of debt is 4%?

5.04%
5.30%
5.58%
6.40%

Answer(s): C

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QUESTION: 82

When estimating the cost of capital, which of the following financial resources would probably NOT be included in the cost of capital calculation?

Common stock
Long-term debt
Preferred stock
Short-term debt

Answer(s): D

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QUESTION: 83

A foreign company could raise capital in the United States using an:

ASP.
ADR.
AR
AVS.

Answer(s): B

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QUESTION: 84

The goal of a successful investor relations program is to ensure:

achievement of the company’s earnings-per-share goal.
accurate preparation of financial statements.
on-time filing of reports.
effective two-way communication between a company, the financial community, and other constituencies.

Answer(s): D

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QUESTION: 81

QUESTION: 82

QUESTION: 83

QUESTION: 84

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