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Fresh Grad Lands Job as Real Estate Agent With Help from Professional Writers

People go to websites to get the information they desperately need.  They could be looking for an answer to a nagging question.  They might be looking for help in completing an important task.  For recent graduates, they might be looking for ways on how to prepare a comprehensive resume that can capture the attention of the hiring manager

Manush is a recent graduate from a prestigious university in California who is looking for a job opportunity as a real estate agent.  While he already has samples provided by his friends, he still feels something lacking in his resume.  Specifically, the he believes that his professional objective statement lacks focus and clarity. 

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“Kudos to the team for a job well done.  I am sincerely appreciative of the time and effort you gave on my resume.  You did not only help me land the job I had always been dreaming of but you also made me realize how important adding those specific keywords to my resume!  Cheers!

Manush’s story shows the importance of using powerful keywords to his resume in landing the job he wanted.

Wk 2 Practice Ch. 13, The Weighted-Average Cost of Capital

Navigation   » List of Schools  »  University of Phoenix  »  Finance  »  Finance 571 – Corporate Finance  »  Spring 2022  »  Wk 2 Practice Ch. 13, The Weighted-Average Cost of Capital

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Below are the questions for the exam with the choices of answers:

Question #1
On a large and healthy firm, the use of yield to maturity as the cost of debt when calculating WACC is appropriate because ______.
A  it will trend toward its long-run average
B  it’s legally required to do so
C  bankruptcy is sufficiently low
D  interest rate risk is negligible
Question #2
If a firm uses its book value of debt instead of its market value of debt to calculate its WACC, then its WACC will likely be ______.
A  only slightly off
B  much lower than it should be
C  much higher than it should be
Question #3
If the corporate tax rate is zero, then increasing the proportion of debt in a firm’s capital structure causes the WACC to _______.
A  remain unchanged
B  increase then decrease
C  increase
D  decrease
Question #4
The increase in the rate that bondholders demand as the amount of debt borrowed increases is called the _______ cost of debt.
A  external
B  implicit
C  internal
D  explicit
Question #5
Vandalay Industries has $30 million of debt and $70 million of equity outstanding. The market cost of debt is 8% and the cost of equity is 14%. The firm has a 35% corporate tax rate. What is Vandalay’s WACC?
A  12.36%
B  11.63%
C  11.00%
D  11.36%
Question #6
The firm’s cost of equity is usually calculated using the _______ equation.
A  free cash flow
B  WACC
C  CAPM
D  net working capital
Question #7
Martin Co. has issued preferred stock with an annual dividend of $6.00. The current market price per share of this preferred stock is $47.00. What is the expected return on the Martin preferred stock?
A  13.5%
B  12.8%
C  12.6%
D  19.9%
Question #8
The cost of capital used by firms should be based on _____ values of the firm’s securities.
A  basic
B  market
C  assessment
D  initial
Question #9
The WACC is the appropriate discount rate for use with ______ projects but should be adjusted ______ for lower risk ones.
A  average; slightly upward
B  average; upward
C  average; downward
D  risk-free; downward
Question #10
A project requires a $12 million initial investment and has expected after-tax cash flows of $2 million in perpetuity. The weighted-average cost of capital is 15%. What is the project’s net present value (NPV)?
A  $13.33 million
B  $93.33 million
C  $1.33 million
D  $66.67 million
Question #11
Potter National Bank has a beta of 1.8. The risk-free rate is currently quoted at 1.5% and the expected market risk premium is 7.5%. What is Potter’s cost of equity?
A  15.0%
B  15.7%
C  14.5%
D  15.5%
Question #12
Preferred stock is valued like perpetuity. The price of preferred stock is therefore equal to ______.
A  dividend − rpreferred
B  dividend/rpreferred
C  dividend + rpreferred
D  dividend × rpreferred
Question #13
It is acceptable to use book values of debt and equity to calculate the weights of debt and equity for the company’s cost of capital calculation.
A  True
B  False
Question #14
The WACC is the appropriate discount rate for use with ______ projects but should be adjusted ______ for higher risk ones.
A  low-risk; considerably
B  average; downward
C  risk-free; upward
D  average; upward
Question #15
Another name for the WACC is the ___________.
A  global cost of capital
B  company cost of capital
C  project specific cost of capital
D  systematic cost of capital
Question #16
A project requires a $1 million initial investment and has an expected after-tax cash flow of $2.4 million per year in perpetuity. The weighted-average cost of capital (WACC) is 13%. What is the net present value (NPV) of the project?
A  $17.46 million
B  $18.46 million
C  $10.77 million
D  $1.4 million
Question #17
The company cost of capital is calculated as a weighted average of the firm’s _______ and _______.
A  debt; equity
B  assets; liabilities
C  debt; net working capital
D  net income; short-term debt
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“Kudos to the team for a job well done.  I am sincerely appreciative of the time and effort you gave on my resume.  You did not only help me land the job I had always been dreaming of but you also made me realize how important adding those specific keywords to my resume!  Cheers!

Manush
Fresh Graduate
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