In retention growth model, payout ratio is subtracted from one to calculate
A). present value ratio
B). future value ratio
C). retention ratio
D). growth ratio
In weighted average cost of capital, cost of capital which is risk adjusted and developed for each category of
A). long-term projects
B). industry [industrial] projects
C). divisional projects
D). short-term projects
Historical growth rates, analysis forecasts and retention growth model are approaches to estimate
A). present value of gain
B). growth rate
C). growth gain
D). discounted gain
If future return on common stock is 19% and rate on T-bonds is 11% then current market risk premium will be
A). Rs 30.00
B). 30.00%
C). 8.00%
D). Rs 8.00
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