Finance Quiz 1

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Finance Quiz 1

1 / 50

Real risk-free interest rate in addition with an inflation premium is equal to_____________?

2 / 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?

3 / 50

Agency theory suggests that managers(the agents), particularly those of large , publically-owned firms, may have different objectives from those of the:

4 / 50

Which of the following statement is considered as the accountant?s snapshot of firm?s accounting value as of a particular date?

5 / 50

Process of calculating future value of money from present value is classified as____________?

6 / 50

If stock market price is higher than strike price so call option____________?

7 / 50

Firm?s promise to pay and is backed or guaranteed by bank is classified as____________?

8 / 50

Cost which has occurred already and not affected by decisions is classified as______________?

9 / 50

Formula such as net income available for common stockholders divided by total assets is used to calculate__________________________?

10 / 50

Which one of the following terms refers to the risk arises for bond owners from fluctuating interest rates?

11 / 50

First step in calculation of net present value is to find out_________?

12 / 50

Ability to trade at net price very quickly is classified as___________?

13 / 50

In which type of business, all owners share in gains and losses and all have unlimited liability for all business debts?

14 / 50

A stock which is hybrid and works as a cross between debt and common stock is considered as_______________?

15 / 50

In weighted average cost of capital, capital components are funds that usually offer by____________?

16 / 50

Tendency of moving together of two variables is classified as_____________?

17 / 50

Rise in stock market is called_______?

18 / 50

Method uses for an estimation of cost of equity is classified as___________?

19 / 50

Financial securities that can be converted into cash at closing to their book value price are classified as_______________?

20 / 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?

21 / 50

A company having a current ratio of 1 will have ________ net working capital.

22 / 50

Price earning ratio and price by cash flow ratio are classified as___________?

23 / 50

Tendency of measuring correlation of two variables is classified as_________?

24 / 50

Reinvestment risk of bonds is higher on__________?

25 / 50

Bonds that can be converted into shares of common stock are classified as_________?

26 / 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?

27 / 50

Bond that has been issued in very recent timing is classified as_______?

28 / 50

Which of the following statement is CORRECT regarding compound interest?

29 / 50

rate which is divided by compounding periods to calculate periodic rate must be___________________?

30 / 50

If a firm uses cash to purchase inventory, its quick ratio will?

31 / 50

The difference between current assets and current liabilities is known as____________?

32 / 50

A portfolio consists of all stocks in a market is classified as____________?

33 / 50

An inflation free rate of return and inflation premium is two components of_________?

34 / 50

Cost of money is affected by factors which includes______________?

35 / 50

Market in which bonds are traded over-the-counter than in an organized exchange is classified as__________?

36 / 50

In a statement of cash flows, a company investing in short-term financial investments and in fixed assets results in______________?

37 / 50

In capital asset pricing model, assumptions must be followed including________?

38 / 50

Long-term equity anticipation security is usually classified as__________?

39 / 50

In which type of market, new securities are traded?

40 / 50

According to capital asset pricing model assumptions, variances, expected returns and co-variance of all assets are__________?

41 / 50

Project whose cash flows are sufficient to repay capital invested for rate of return then net present value will be_________?

42 / 50

Cost of common stock is 16% and bond yield is 9% then bond risk premium would be_________?

43 / 50

In case of international business which of the given factor(s) must be considered?

44 / 50

An interest rate which is paid by firm as soon as it issues debt is classified as pre-tax__________?

45 / 50

A portion of profits, which a company retains itself for further expansion, is known as:

46 / 50

Which of the following item provides the important function of shielding part of income from taxes?

47 / 50

Term structure premium, an inflation of bond and bond default premium are included in_________________?

48 / 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:

49 / 50

Bonds issued by small companies tend to have_____________?

50 / 50

Bonds issued by local and state governments with default risk are____________?

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