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