Question
XYZ Corporation is financed by 30% equity and 70% by
debt. The company has an after-tax cost of debt of 9% and the beta of shares in XYZ is 2. The risk-free rate of return is 3% and the equity risk premium is 8%. What is the after-tax weighted average cost of capital of XYZ company?Solution
Cost of equity = 3% + 2 x 8% = 19% WACC = (30% x 19%) + (70% x 9%) = 12%
A series is given, with one term missing. Choose the correct alternative from the given ones that will complete the series.
W, V, T, Q, M ?
What should come in place of '?' in the given series?
 32, 38, 47, 59, 74, 92, ?
Select the term that will come next in the following series.
14, 16, 20, 26, 34, 44, 56, 70, 86, ?
Three of the following four number-pairs are alike in a certain way and one is different. Find the odd one out.
Select the option that is related to the third term in the same way as the second term is related to the first term.
MARINE : NZIRMV :: LATTER : _______
In each question below are given three statements followed by three conclusions numbered I, II and III. You have to take the two given statements to be...
Which of the following boxes is placed immediately above and immediately below N?
Which Answer Figure will complete the pattern in the figure?
Arrange the given words in the sequence in which they occur in the dictionary.
i. Realistic
ii. Reason
iii. Reached
iv. Reassure
V. Rear
Which one of the following will come in third place when arranged in Alphabetical order?