SDSU BA323 BRINCKS FINAL
EXAM 2025 | ALL QUESTIONS AND
CORRECT ANSWERS | GRADED A+
| NEWEST VERSION | VERIFIED
ANSWERS
Save
Terms in this set (85)
, WACC is necessary for making
corporate investment decisions,
such as building a new factory.
WACC gauges the risk of a project
Why do we care (Higher WACC means more risk
about the associated.) Two sides of an
weighted investment decision:
average cost of
capital (WACC)? - How much money will this project
make?
- How much does it cost for the firm
to get the funds for this investment?
What are the 3 Debt, preferred stock, and common
main sources of equity are 3 main sources of capital
capital for the
firm?
What are the 2 Retained earnings and new common
components of stock are 2 components of common
common equity? equity.
What are 2 Short term notes payable and long-
components of term debt are 2 components of
debt? debt.
, Do we care After-tax capital cost since interest
about after-tax is tax deductible
or pre-tax
analysis? Why?
What are the 3 Accounting numbers (book value),
methods of Market value and optimal capital
determining a structure determination are all
company's methods used to determine target
target weights? weights.
What are the 3 CAPM, DCF, and Bond-yield + risk
ways to premium
determine the
cost of common
equity?
If earnings are retained, there is an
Why is there a opportunity cost (the return that
cost for retained stockholders could earn on
earnings? alternative investments of equal
risk).
EXAM 2025 | ALL QUESTIONS AND
CORRECT ANSWERS | GRADED A+
| NEWEST VERSION | VERIFIED
ANSWERS
Save
Terms in this set (85)
, WACC is necessary for making
corporate investment decisions,
such as building a new factory.
WACC gauges the risk of a project
Why do we care (Higher WACC means more risk
about the associated.) Two sides of an
weighted investment decision:
average cost of
capital (WACC)? - How much money will this project
make?
- How much does it cost for the firm
to get the funds for this investment?
What are the 3 Debt, preferred stock, and common
main sources of equity are 3 main sources of capital
capital for the
firm?
What are the 2 Retained earnings and new common
components of stock are 2 components of common
common equity? equity.
What are 2 Short term notes payable and long-
components of term debt are 2 components of
debt? debt.
, Do we care After-tax capital cost since interest
about after-tax is tax deductible
or pre-tax
analysis? Why?
What are the 3 Accounting numbers (book value),
methods of Market value and optimal capital
determining a structure determination are all
company's methods used to determine target
target weights? weights.
What are the 3 CAPM, DCF, and Bond-yield + risk
ways to premium
determine the
cost of common
equity?
If earnings are retained, there is an
Why is there a opportunity cost (the return that
cost for retained stockholders could earn on
earnings? alternative investments of equal
risk).
