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31. Risk free rate is subtracted from expected market return is considered as___________?

A. Country risk
B. Diversifiable risk
C. Equity risk premium
D. Market risk premium

32. Beta which is estimated as regression slope coefficient is classified as___________?

A. Historical beta
B. Market beta
C. Coefficient beta
D. Riskier beta

33. In weighted average capital, capital structure weights estimation does not rely on value of__________?

A. Investors equity
B. Market value of equity
C. Book value of equity
D. Stock equity

34. Method uses for an estimation of cost of equity is classified as___________?

A. Market cash flow
B. Future cash flow method
C. Discounted cash flow method
D. Present cash flow method

35. Variability for expected returns for projects is classified as___________?

A. Expected risk
B. Stand-alone risk
C. Variable risk
D. Returning risk

36. A risk associated with project and way considered by well diversified stockholder is classified as______________?

A. Expected risk
B. Beta risk
C. Industry risk
D. Returning risk

37. During planning period, a marginal cost for raising a new debt is classified as__________?

A. Debt cost
B. Relevant cost
C. Borrowing cost
D. Embedded cost

38. If coupon rate is more than going rate of interest, then bond will be sold________?

A. More than its par value
B. Seasoned par value
C. At par value
D. Below its par value

39. Type of bond in which payments are made on basis of inflation index is classified as_____________?

A. Borrowed bond
B. Purchasing power bond
C. Surplus bond
D. Deficit bond

40. Price of an outstanding bond decreases when market rate is_______________?

A. Increased
B. Decreased
C. Earned
D. Never changed