5 Questions
Which source of finance has the highest percentage in the company's capital structure?
Common equity capital
What is the interest rate on the company's debt before tax?
10%
What is the maximum capital budget of the company?
$8,000,000
What is the cost of preferred stocks?
12%
What is the purpose of a capital budget?
To analyze projects and decide which ones to accept
Test your knowledge on capital structure and finance costs with this quiz! Learn about different sources of finance, their percentages, and the associated costs. Explore concepts like debt capital, preferred stock capital, and common equity capital. Challenge yourself to understand the capital budget and its importance in capital budgeting.
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