CAPM Formula

Practice Questions

CPA Business Environment and Concepts (BEC) › CAPM Formula

Questions
6
1

The overall cost of capital is the:

2

ABC company is determining how to finance some long term debt projects. ABC has decided it prefers the benefits of no fixed charges, no fixed maturity date, and an increase in the creditworthiness of the company. Which of the following would best meet ABC's financing requirements?

3

Using the capital asset pricing model, the required rate of return for a firm with a beta of 1.25 when the market return is 14% and the risk-free rate is 6% is:

4

The cost of debt most frequently is measured as:

5

The benefits of debt financing over equity financing are likely to be highest in which of the following situations?

6

Of the following, which would not impact the CAPM formula in determining a firm's cost of retained earnings?

Return to subject