Weighted average cost of debt, preferred stock and common equity is classified as
A. cost of salvage
B. cost of interest
C. cost of taxation
D. cost of capital
Answer: Option D
Solution(By Examveda Team)
Weighted average cost of debt, preferred stock and common equity is classified as cost of capital. Cost of capital is the required return necessary to make a capital budgeting project, such as building a new factory, worthwhile.This Question Belongs to Commerce >> Financial Management
Investment is the _______________.
A. net additions made to the nation’s capital stocks
B. person’s commitment to buy a flat or house
C. employment of funds on assets to earn returns
D. employment of funds on goods and services that are used in production process
Financial Management is mainly concerned with ______________.
A. All aspects of acquiring and utilizing financial resources for firms activities
B. Arrangement of funds
C. Efficient Management of every business
D. Profit maximization
The primary goal of the financial management is ____________.
A. to maximize the return
B. to minimize the risk
C. to maximize the wealth of owners
D. to maximize profit
In his traditional role the finance manager is responsible for ___________.
A. proper utilisation of funds
B. arrangement of financial resources
C. acquiring capital assets of the organization
D. efficient management of capital
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