AOL Finance Test exam 2023 with 100% correct answers

WACC (weighted average cost of capital) - correct answerA weighted average of the component costs of debt, preferred stock, and common equity. CAPM (Capital Asset Pricing Model) Formula - correct answerKcs = Rrf + B(Rm-Rrf) where Rrf = risk free rate, B = beta, Rm = return on the market, Rm-Rrf = risk premium CAPM (Capital Asset Pricing Model) - correct answera model based on the proposition that any stock's required rate of return is equal to the risk-free rate of return plus a risk premium that reflects only the risk remaining after diversification WACC Formula - correct answer= WeRe + WdRd(1-Tc) + WpRp P=Preferred stock foreign exchange rate - correct answerthe price of one currency in terms of another Direct Exchange Rate - correct answerspecifies the value of the currency in U.S. dollars.For example, the Mexican peso may have a value of $.10 Indirect Exchange Rate - correct answerspecifies the value of the currency as the number of that currency equal to a U.S. dollar. For example: 98 Yen per dollar. =1/direct Parity interest rate -