Cost of equity which is raised by reinvesting earnings internally must be higher than the

A cost of initial offering
B cost of new common equity
C cost of preferred equity
D cost of floatation

Correct Answer: cost of new common equity

Cost of equity which is raised by reinvesting earnings internally must be higher than the cost of new common equity. The cost of equity is the return a company requires to decide if an investment meets capital return requirements.
Bissoy MCQ
#Commerce #Financial Management

Related Questions

Type of cost which is used to raise common equity by reinvesting internal earnings is classified as
A cost of mortgage
B cost of common equity
C cost of stocks
D cost of reserve assets
Company K'a earnings were Tk. 12 million last year. If this year's earnings are projected to be 150% greater than last year's earnings, what are Company K's projected earnings this year?
A Tk. 13.5 million
B Tk. 18 million
C Tk. 27 million
D none of these
h,J,K,L,M,N and O are the only legislators eligible to vote on Bills 1,2 and 3, each of which will be passed if at least four legislators eligible vote in favor of it. each legislator must vote on all three bills; on abstentions are possible. The following is known : *H must vote against all three bills; each of the other legislators must vote in favor of at least one bill and against at lest one bill. *j must vote against Bills 1. *O Must vote against Bills 2 and 3. * L must the same way that K dose on all three bills.*N must vote the same way that O dose on all three bills. which of the following must vote in favor of Bill 1 ?
A J
B K
C L
D O
h,J,K,L,M,N and O are the only legislators eligible to vote on Bills 1,2 and 3, each of which will be passed if at least four legislators eligible vote in favor of it. each legislator must vote on all three bills; on abstentions are possible. The following is known : *H must vote against all three bills; each of the other legislators must vote in favor of at least one bill and against at lest one bill. *j must vote against Bills 1. *O Must vote against Bills 2 and 3. * L must the same way that K dose on all three bills.*N must vote the same way that O dose on all three bills. If any bill is to be passed,which of the following must be among the legislators who vote in favor of it?
A J
B K
C M
D N
The Apple Company had net income of TK. 47,500 and earnings per share of Tk. 3.17 during 2010. On December 31,2010, the stock had a market price of Tk. 18.50 per share. What is Apple Company's price earnings ratio ?
A 25.70
B 8.11
C 5.84
D 0.17
A factor of production, whose supply is fixed in the short run, may get additional earnings. These earnings are generally referred to as
A Surplus value
B Quasi-rent
C Transfer earnings
D Super normal profits
A factor of production, whose supply is fixed in the short tun, may get additional earnings. These earnings are generally referred to as
A Surplus value
B Quasi-rent
C Transfer earnings
D Super normal profits
h,J,K,L,M,N and O are the only legislators eligible to vote on Bills 1,2 and 3, each of which will be passed if at least four legislators eligible vote in favor of it. each legislator must vote on all three bills; on abstentions are possible. The following is known : *H must vote against all three bills; each of the other legislators must vote in favor of at least one bill and against at lest one bill. *j must vote against Bills 1. *O Must vote against Bills 2 and 3. * L must the same way that K dose on all three bills.*N must vote the same way that O dose on all three bills. which of the following cannot be true ?
A J and K vote in favor of the same bill
B J and O vote in favor of the same bill
C J votes in favor of one bill and against two bills
D k votes in favor of two bills and against one bill
h,J,K,L,M,N and O are the only legislators eligible to vote on Bills 1,2 and 3, each of which will be passed if at least four legislators eligible vote in favor of it. each legislator must vote on all three bills; on abstentions are possible. The following is known : *H must vote against all three bills; each of the other legislators must vote in favor of at least one bill and against at lest one bill. *j must vote against Bills 1. *O Must vote against Bills 2 and 3. * L must the same way that K dose on all three bills.*N must vote the same way that O dose on all three bills. If M votes the same way that O dose on all three bills, which of the following can be determined ?
A Bill I will be passed
B Bill I will be defeated
C Bill 2 will be passed
D Bill 2 will be defeated
h,J,K,L,M,N and O are the only legislators eligible to vote on Bills 1,2 and 3, each of which will be passed if at least four legislators eligible vote in favor of it. each legislator must vote on all three bills; on abstentions are possible. The following is known : *H must vote against all three bills; each of the other legislators must vote in favor of at least one bill and against at lest one bill. *j must vote against Bills 1. *O Must vote against Bills 2 and 3. * L must the same way that K dose on all three bills.*N must vote the same way that O dose on all three bills. The maximum number of favorable votes that Bill 2 could receive is ---
A Two
B Three
C Four
D Five

Next steps