Cost of Capital: Flotation Cost, NPV & Internal Equity

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

What is net present value?

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1. What is the cost of capital?

2. What are flotation costs?

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About This Quiz & Worksheet

This quiz and its attached worksheet let you see what you know about the cost of capital for a business. You will be quizzed on specific terms related to this concept.

Quiz & Worksheet Goals

In this set of questions, you'll assess your knowledge of:

  • Internal equity
  • Net present value
  • Flotation costs

Skills Practiced

  • Reading comprehension - ensure that you draw the most important information from the lesson, such as what cost of capital is for a business
  • Defining key concepts - ensure that you can accurately define main terms, such as internal equity and flotation costs
  • Information recall - access the knowledge you've gained regarding some tools a business can use to decide whether they need capital and where to find sources of it

Additional Learning

If you would like to know more about this type of finance, review the lesson titled Cost of Capital: Flotation Cost, NPV & Internal Equity. You will explore new concepts like:

  • Examples of business needs that require capital
  • Factoring labor costs into equity calculations
  • Calculating return on investment
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