1. A firm's capital structure consists of which of the following?
A) Common stock
B) Preferred stock
C) Bonds
D) All of the above
2. Which of the following must be adjusted for the firm's tax rate when estimating the weighted average cost of capital WACC?
A) Cost of common equity
B) Cost of preferred stock
C) Cost of debt
D) All of the above
3. Which of the following would NOT be considered in calculating a firm's cost of capital?
A) Bonds
B) Accounts payable
C) Preferred Stock
D) common stock
4. Typical steps in the financial planning process include:
A) preparing a sales forecast.
B) analyzing cost data.
C) estimating tax expense.
D) all of the above.