Run the capital gates

Exercise and reference answers

Questions

1. Correct

   Debt

   Choices

   1. Debt
   2. Equity
   3. Neither

2. Correct

   Equity

   Choices

   1. Debt
   2. Equity
   3. Neither

3. Correct

   CAPM

   Choices

   1. CAPM
   2. Div growth
   3. Neither

4. Correct

   Div growth

   Choices

   1. CAPM
   2. Div growth
   3. Neither

5. Correct

   Bondholder

   Choices

   1. Bondholder
   2. Preferred
   3. Common

6. Correct

   Common

   Choices

   1. Bondholder
   2. Preferred
   3. Common

Instructions

Pick the funding source, then the model, then the claimant.

Explanation