Question 1 (1 point) When we want to measure a firm's capital structure,...

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Finance

Question 1 (1 point)

When we want to measure a firm's capital structure, we will use WACC as

Question 1 options:

we want to weight the quantity and costs of Debt, Preferred Stock and Equity

we want to view through both book value and market value lenses

we will want to compare to capital structure and earnings and cash flow results of peers

all of the above

Question 2 (1 point)

When we assess risk of a business assuming the pure risks of a business with no debt (financial debt), we are focused on

Question 2 options:

Operating Leverage Risk

Financial Risk

Business Risk

Dividend Pay-Out Risk

Question 3 (1 point)

When we are assessing fixed costs in a business to assess variability of sales and its impact on returns on invested capital, we are focused on

Question 3 options:

Business Risk

Operating Leverage

Financial Risk

Interest Rate Risk

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