Finance Quiz 2
1 / 50
The investment decision is the most important of the firm?s three major decisions, when it comes to:
2 / 50
Price of stock that companies observe in financial markets is called____________?
3 / 50
If market interest rate falls below coupon rate then bond will be sold__________?
4 / 50
Weighted average cost of debt, preferred stock and common equity is classified as_____________?
5 / 50
An increasing in interest rate leads to decline in value of__________?
6 / 50
In financial planning, most high option price will lead to__________?
7 / 50
A regulatory body which licenses brokers and oversees traders is classified as__________?
8 / 50
An efficient set of portfolios represented through graph is classified as an__________?
9 / 50
In situation of bankruptcy, stock which is recorded above common stock and below debt account is_____________?
10 / 50
Quick Ratio is also known as_______________?
11 / 50
Mostly in financials, risk of portfolio is smaller than that of asset?s________?
12 / 50
Payment if it is divided with interest rate will be formula of__________?
13 / 50
Net investment in operating capital is subtracted from net operating profit after taxes to calculate___________?
14 / 50
The most important item that can be extracted from financial statements is the actual ________ of the firm.
15 / 50
Cost of capital is equal to required return rate on equity in case if investors are only__________?
16 / 50
Return on assets = 6.7% and equity multiplier = 2.5% then return on equity will be ______________?
17 / 50
If market interest rate rises above coupon rate, then bond will be sold_____________?
18 / 50
Federal Reserve policy and federal surplus or deficit of budget affect the____________?
19 / 50
You just won a prize, you can either receive Rs. 1000 today or Rs. 1,050 in one year. Which option do you prefer and why if you can earn 5 percent on your money?
20 / 50
Markets which deals with high liquid and short-term debt securities are classified as_____________?
21 / 50
Financial markets include___________?
22 / 50
Beta which is estimated as regression slope coefficient is classified as___________?
23 / 50
Capital budgeting decisions are analyzed with help of weighted average and for this purpose____________?
24 / 50
Financial policy is evaluated by which of the following?
25 / 50
Treasury bonds are exposed to additional risks that are included________?
26 / 50
If default probability is zero and bond is not called, then yield to maturity is_____________?
27 / 50
In financial markets, period of maturity less than one year of financial instruments is classified as________________?
28 / 50
The Yield to Maturity of a bond is the same as_____________?
29 / 50
Low price for earnings ratio is result of________________?
30 / 50
In balance sheet, sum of retained earnings and common stock are considered as_____________?
31 / 50
Relevant cash flow which company expects when its will implement project is classified as_____________?
32 / 50
In an individual stock, relevant risk is classified as___________?
33 / 50
Rate of return which is required to satisfy stockholders and debt holders is classified as__________?
34 / 50
Financial security which is tax exempted and issues by state governments to individuals is classified as___________?
35 / 50
Net income is $2250 and non cash charges are $1150 then net cash flow would be _________?
36 / 50
Which of the following costs are reported on the income statement as the cost of goods sold?
37 / 50
In retention growth model, payout ratio is subtracted from one to calculate___________?
38 / 50
If coupon rate is equal to going rate of interest, then bond will be sold________?
39 / 50
Cash flows occurring with more than one change in sign of cash flow are classified as________?
40 / 50
Movement of price or rise or fall of prices of options is classified as_________?
41 / 50
Balance Sheet is based upon which of the following formula?
42 / 50
An analysis of decision making of investors and managers is classified as_________?
43 / 50
Notes, mortgages, bonds, stocks, treasury bills and consumer loans are classified as______________?
44 / 50
If current price increases from lower to higher then an____________?
45 / 50
Markets which bring closer institutions needing funds and with surplus funds are classified as______________?
46 / 50
Risk free rate is subtracted from expected market return is considered as___________?
47 / 50
Profit maximization is the maximizing a firm?s Earning:
48 / 50
A project whose cash flows are more than capital invested for rate of return then net present value will be___________?
49 / 50
Stocks which has high book for market ratio are considered as_____________?
50 / 50
Stocks which has lower book for market ratio are considered as__________?
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