0% 0 Finance Quiz 1 1 / 50 Bonds that can be converted into shares of common stock are classified as_________? Common bonds Stock bonds Convertible bonds Shared bonds 2 / 50 In which type of market, new securities are traded? Secondary market None of the given options Tertiary market Primary market 3 / 50 Method uses for an estimation of cost of equity is classified as___________? Market cash flow Present cash flow method Discounted cash flow method Future cash flow method 4 / 50 In case of international business which of the given factor(s) must be considered? Attitude of Governments Role of foreign exchange All of the given options Balance of payments 5 / 50 An interest rate which is paid by firm as soon as it issues debt is classified as pre-tax__________? Cost of debt Market premium Term structure Risk premium 6 / 50 In capital asset pricing model, assumptions must be followed including________? All of above No taxes Fixed quantities of assets No transaction costs 7 / 50 Real risk-free interest rate in addition with an inflation premium is equal to_____________? Liquidity risk-free interest rate Quoted risk-free interest rate Required interest rate Premium risk-free interest rate 8 / 50 Process of calculating future value of money from present value is classified as____________? Discounting Stock value Compounding Money value 9 / 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? 25% 40% 60% 12% 10 / 50 The difference between current assets and current liabilities is known as____________? Surplus Asset Working Capital Current Ratio Short-term Ratio 11 / 50 Cost of common stock is 16% and bond yield is 9% then bond risk premium would be_________? 8% 7% 1.78% 25% 12 / 50 Which of the following statement is CORRECT regarding compound interest? It is calculated by multiplying principal by rate multiplied by time. It does not take into account the accumulated interest for calculation. It is the most basic form of calculating interest. It earns profit not only on principal but also on interest. 13 / 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: None of the given options Compounding Discounting Factorization 14 / 50 If stock market price is higher than strike price so call option____________? Price will be higher Price will be lower Rate will be lower Rate will be higher 15 / 50 Long-term equity anticipation security is usually classified as__________? Short-term options Long-term options Short money options Yearly call 16 / 50 Reinvestment risk of bonds is higher on__________? High premium bonds High maturity bonds High inflated bonds Short maturity bonds 17 / 50 Agency theory suggests that managers(the agents), particularly those of large , publically-owned firms, may have different objectives from those of the: Employees Shareholders Workers Subordinates 18 / 50 Cost which has occurred already and not affected by decisions is classified as______________? Mean cost Occurred cost Weighted cost Sunk cost 19 / 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? None of the given options Ordinary annuity Perpetuity Annuity due 20 / 50 A stock which is hybrid and works as a cross between debt and common stock is considered as_______________? Debt liabilities Common liabilities Preferred stock Hybrid stock 21 / 50 Ability to trade at net price very quickly is classified as___________? Fixed price trading Original trading Offline trading Liquidity 22 / 50 If a firm uses cash to purchase inventory, its quick ratio will? Remain unaffected Decrease Become zero Increase 23 / 50 Bond that has been issued in very recent timing is classified as_______? Mature issue New issue Earning issue Recent issue 24 / 50 Market in which bonds are traded over-the-counter than in an organized exchange is classified as__________? Counter markets Trade markets Bond markets Organized markets 25 / 50 Rise in stock market is called_______? bullish none of this hawkish bearish 26 / 50 Which of the following item provides the important function of shielding part of income from taxes? Supplies Inventory Machinery Depreciation 27 / 50 Bonds issued by local and state governments with default risk are____________? Default bonds Municipal bonds Zero bonds Corporation bonds 28 / 50 Which of the following statement is considered as the accountant?s snapshot of firm?s accounting value as of a particular date? Income Statement Retained Earning Statement Cash Flow Statement Balance Sheet 29 / 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? 18.78 years 10.51 years 8.42 years 15.75 years 30 / 50 Price earning ratio and price by cash flow ratio are classified as___________? Equity ratios Market value ratios Return ratios Marginal ratios 31 / 50 Tendency of moving together of two variables is classified as_____________? Move tendency Correlation Variables tendency Double tendency 32 / 50 Financial securities that can be converted into cash at closing to their book value price are classified as_______________? Long-term investments Short-term investments Cash equivalents Inventories 33 / 50 In which type of business, all owners share in gains and losses and all have unlimited liability for all business debts? Limited Partnerhsip General Partnership Corporation Sole-proprietorship 34 / 50 A portfolio consists of all stocks in a market is classified as____________? Diversified portfolio Correlated portfolio Market portfolio Return portfolio 35 / 50 An inflation free rate of return and inflation premium is two components of_________? Steeper rate Quoted rate Unquoted rate Portfolio rate 36 / 50 Tendency of measuring correlation of two variables is classified as_________? Double coefficient Correlation coefficient Tendency coefficient Variable coefficient 37 / 50 Firm?s promise to pay and is backed or guaranteed by bank is classified as____________? Treasury acceptance Federal acceptance Customer?s acceptance Banker?s acceptance 38 / 50 In weighted average cost of capital, capital components are funds that usually offer by____________? Investors Stock market Capitalist Exchange index 39 / 50 rate which is divided by compounding periods to calculate periodic rate must be___________________? Nominal rate Semiannual discount rate Deferred annuity return Annuity return 40 / 50 First step in calculation of net present value is to find out_________? Future value of cash flow Present value cash flow Future value of equity Present value of equity 41 / 50 A company having a current ratio of 1 will have ________ net working capital. Negative Positive zero None of the given options 42 / 50 Term structure premium, an inflation of bond and bond default premium are included in_________________? Bond buying factors Premium factors Risk factors Multi model 43 / 50 Bonds issued by small companies tend to have_____________? High liquidity premium High yield premium High default premium High inflation premium 44 / 50 Cost of money is affected by factors which includes______________? Inflation Production opportunities Risk All of above 45 / 50 According to capital asset pricing model assumptions, variances, expected returns and co-variance of all assets are__________? Not identical Fixed Identical Variable 46 / 50 Formula such as net income available for common stockholders divided by total assets is used to calculate__________________________? Return on sales Return on total assets Return on debt Return on total equity 47 / 50 A portion of profits, which a company retains itself for further expansion, is known as: Dividends Capital Gain Retained Earnings None of the given options 48 / 50 In a statement of cash flows, a company investing in short-term financial investments and in fixed assets results in______________? Increased cash Decreased cash Increased liabilities Increased equity 49 / 50 Which one of the following terms refers to the risk arises for bond owners from fluctuating interest rates? Real-Time Risk Interest Rate Risk Fluctuations Risk Inflation Risk 50 / 50 Project whose cash flows are sufficient to repay capital invested for rate of return then net present value will be_________? Independent Positive Zero Negative Provide Your Information Your score is The average score is 0% LinkedIn Facebook Twitter 0% Restart quiz Send feedback Share on facebook Facebook Share on twitter Twitter Share on whatsapp WhatsApp Finance Quiz 2Next
