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CFA Level II Vignettes Corporate Finance Cost of Capital MCQs Test 1
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CFA Level II Vignettes Corporate Finance Cost of Capital MCQs Test 1

Practice CFA 2026 Level II Vignettes Corporate Finance MCQs from Cost of Capital. Get instant results with Explanation.
Practice Quiz 1 for "Cost of Capital" (Corporate Finance). Total 30 MCQs available, split into 3 quizzes. Start with the fundamentals and build a strong base. Mastering these concepts is essential for securing a high percentile in CFA.
General10 MCQs
1. Vignette 1: Cost of Capital - Case Study: A company has market value of debt $200 million, preferred stock $50 million, and common equity $250 million. The cost of debt is 6%, cost of preferred is 8%, and cost of equity is 12%. What is the WACC? (Tax rate 30%)
2. Calculate the after-tax cost of debt given a pre-tax cost of 6% and tax rate 30%.
3. What weights should be used in WACC?
4. Compute the WACC using the given values.
5. How is the cost of equity estimated?
General10 MCQs
6. Vignette 2: Cost of Capital - Case Study: A company has a beta of 1.2, risk-free rate of 3%, and market risk premium of 6%. What is the cost of equity using CAPM?
7. Calculate the cost of equity for the company.
8. What does beta represent in CAPM?
9. What is the market risk premium?
10. What is an appropriate proxy for the risk-free rate in CAPM?

📋 CFA - Test Online Practice Quizzes

CFA

Conducting Body: CFA Institute
Frequency: 4 times a year (February, May, August, November) | Time: 70 Minutes
Negative Marking: No

⚡ Test Pattern (Total: 90 MCQs):

Subject breakdown not available.

Merit Formula: -

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