Finance Quiz 1
1 / 50
Agency theory suggests that managers(the agents), particularly those of large , publically-owned firms, may have different objectives from those of the:
2 / 50
In which type of market, new securities are traded?
3 / 50
Financial securities that can be converted into cash at closing to their book value price are classified as_______________?
4 / 50
Method uses for an estimation of cost of equity is classified as___________?
5 / 50
rate which is divided by compounding periods to calculate periodic rate must be___________________?
6 / 50
Term structure premium, an inflation of bond and bond default premium are included in_________________?
7 / 50
In a statement of cash flows, a company investing in short-term financial investments and in fixed assets results in______________?
8 / 50
A company having a current ratio of 1 will have ________ net working capital.
9 / 50
Bond that has been issued in very recent timing is classified as_______?
10 / 50
In case of international business which of the given factor(s) must be considered?
11 / 50
Which of the following statement is CORRECT regarding compound interest?
12 / 50
Bonds issued by local and state governments with default risk are____________?
13 / 50
Long-term equity anticipation security is usually classified as__________?
14 / 50
Ability to trade at net price very quickly is classified as___________?
15 / 50
Market in which bonds are traded over-the-counter than in an organized exchange is classified as__________?
16 / 50
Formula such as net income available for common stockholders divided by total assets is used to calculate__________________________?
17 / 50
The process of determining the present value of a payment or a stream of payments that is to be received in the future is known as:
18 / 50
Firm?s promise to pay and is backed or guaranteed by bank is classified as____________?
19 / 50
If stock market price is higher than strike price so call option____________?
20 / 50
Reinvestment risk of bonds is higher on__________?
21 / 50
A portion of profits, which a company retains itself for further expansion, is known as:
22 / 50
First step in calculation of net present value is to find out_________?
23 / 50
In capital asset pricing model, assumptions must be followed including________?
24 / 50
Real risk-free interest rate in addition with an inflation premium is equal to_____________?
25 / 50
In which type of business, all owners share in gains and losses and all have unlimited liability for all business debts?
26 / 50
A portfolio consists of all stocks in a market is classified as____________?
27 / 50
According to capital asset pricing model assumptions, variances, expected returns and co-variance of all assets are__________?
28 / 50
A stock which is hybrid and works as a cross between debt and common stock is considered as_______________?
29 / 50
Tendency of moving together of two variables is classified as_____________?
30 / 50
If a firm uses cash to purchase inventory, its quick ratio will?
31 / 50
Rise in stock market is called_______?
32 / 50
Price earning ratio and price by cash flow ratio are classified as___________?
33 / 50
In weighted average cost of capital, capital components are funds that usually offer by____________?
34 / 50
Which of the following item provides the important function of shielding part of income from taxes?
35 / 50
Project whose cash flows are sufficient to repay capital invested for rate of return then net present value will be_________?
36 / 50
Cost of common stock is 16% and bond yield is 9% then bond risk premium would be_________?
37 / 50
Cost of money is affected by factors which includes______________?
38 / 50
Bonds that can be converted into shares of common stock are classified as_________?
39 / 50
Which one of the following terms refers to the risk arises for bond owners from fluctuating interest rates?
40 / 50
Bonds issued by small companies tend to have_____________?
41 / 50
Process of calculating future value of money from present value is classified as____________?
42 / 50
Which of the following is a series of constant cash flows that occur at the end of each period for some fixed number of periods?
43 / 50
An interest rate which is paid by firm as soon as it issues debt is classified as pre-tax__________?
44 / 50
Tendency of measuring correlation of two variables is classified as_________?
45 / 50
Which of the following statement is considered as the accountant?s snapshot of firm?s accounting value as of a particular date?
46 / 50
The difference between current assets and current liabilities is known as____________?
47 / 50
Cost which has occurred already and not affected by decisions is classified as______________?
48 / 50
You need Rs. 10,000 to buy a new television. If you have Rs. 6,000 to invest at 5 percent compounded annually, how long will you have to wait to buy the television?
49 / 50
An inflation free rate of return and inflation premium is two components of_________?
50 / 50
A firm has paid out Rs. 150,000 as dividends from its net income of Rs. 250,000. What is the retention ratio for the firm?
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