PGT (Commerce previous year questions) (HTET) (Part – II)

Total Questions: 100

71. Which of the following has the highest cost of capital?

Correct Answer: A. Equity shares

72. Cost of Capital for Government securities is also known as:

Correct Answer: A. Risk-free Rate of Interest

73. Cost of Capital for Bonds and Debentures is calculated on:

Correct Answer: B. After Tax basis

74. Weighted Average Cost of Capital is generally denoted by:

Correct Answer: C.

75. Which of the following cost of capital require tax adjustment?

Correct Answer: C. Cost of Debentures

76. Which is the most expensive source of funds?

Correct Answer: A. New Equity Shares

77. Marginal cost of capital is the cost of:

Correct Answer: B. Additional Funds

78. In case the firm is all-equity financed, WACC would be equal to:

Correct Answer: B. Cost of Equity

79. In case of partially debt-financed firm, k₀ is less:

Correct Answer: B.

80. In order to calculate Weighted Average Cost of weights may be based on:

Correct Answer: D. All of the above