tor Subject Quiz - Course Hero x coursehero.com (-quiz/Finance/ Course Hero Find Browse Find study resources Ask Study Resources v Textbook Solutions Expert Tutors K Exit Test Finance Knowledge Test...

Extracted text: tor Subject Quiz - Course Hero x coursehero.com (-quiz/Finance/ Course Hero Find Browse Find study resources Ask Study Resources v Textbook Solutions Expert Tutors K Exit Test Finance Knowledge Test (10 questions) 1. Which of the following are acceptable criteria for determining the weights in the weighted average cost of capital? O Market value of the capital structure and historical costs of financing Market value of the capital structure and the target mix of debt and equity Using the after-tax cost of debt and the market value of the capital structure Using the book value of the capital structure and the prior level of debt and equity 2. When a company increases its degree of financial leverage, the equity beta of the company falls the systematic risk of the company falls the unsystematic risk of the company falls the standard deviation of returns on the equity of the company rises 3. Calculate the degree of financial leverage for a firm with EBIT of $6,000,000, fixed cost of $3,000,000, interest expense of $1,000,00 stock dividends of 800.000, and a 40 percent tax rate P Type here to search 2 26°C Haze ho f6 144 24 4. %23 3. 6 7 8. 9.