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Updated 2007-06-17 13:43

Chapter10

QuestionAnswer
The weighted average cost of capital, WACC, is _____ - debt, preferred stock, and common equity. Each weighting factor is the proportion of that type of capital in the optimal, or target, capital structure.the weighted average of the after-tax component costs of capital
The weighted average cost of capital, WACC, is the weighted average of the after-tax component costs of capital - _____(3 things). Each weighting factor is the proportion of that type of capital in the optimal, or target, capital structure.debt, preferred stock, and common equity
The weighted average cost of capital, WACC, is the weighted average of the after-tax component costs of capital - debt, preferred stock, and common equity. Each weighting factor is _____ in the optimal, or target, capital structure.the proportion of that type of capital
The weighted average cost of capital, WACC, is the weighted average of the after-tax component costs of capital - debt, preferred stock, and common equity. Each weighting factor is the proportion of that type of capital in _____.the optimal, or target, capital structure
The _____, rd(1 - T), is the relevant cost to the firm of new debt financingafter-tax component cost of debt
The after-tax component cost of debt, _____ (equation), is the relevant cost to the firm of new debt financingrd(1 - T)
The after-tax component cost of debt, rd(1 - T), is _____ of new debt financingthe relevant cost to the firm
The after-tax component cost of debt, rd(1 - T), is the relevant cost to the firm of _____new debt financing
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Chapter 5

QuestionAnswer
The technician is interested only in _____the record of a stock's price. p109
The fundamentalist's primary concern is with _____what a stock is really worth. p110
The fundamentalist's most improtant job is to estimate the firm's _____future stream of earnings and dividends. p110
Fundamentalist stock valuation determinant #1, value high ifhigh growth rate, long duration (GDRI)
Fundamentalist stock valuation determinant #2, value high ifhigh dividend payout (GDRI)
Fundamentalist stock valuation determinant #3, value high iflow risk (GDRI)
Fundamentalist stock valuation determinant #4, value high iflow interest rates (GDRI)
The mathematical precision of fundamental-value formulas is based on what treacherous ground?forecasting the future
Fundamental analysis might fail to work because _____ may be incorrectinformation and analysis
Fundamental analysis might fail to work because information and analysis _____may be incorrect
Fundamental analysis might fail to work because the analyst's _____ may be faultyestimate of value
Fundamental analysis might fail to work because the analyst's estimate of value _____may be faulty
Fundamental analysis might fail to work because the market may _____not correct its mistake (of undervaluation)
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Chapter 1

Question Answer
A "castle in the air" is a _____ which does not reach fruition due to practical considerationscreative idea
A "castle in the air" is a creative idea which _____ due to practical considerationsdoes not reach fruition
A "castle in the air" is a creative idea which does not reach fruition due to _____practical considerations
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