Finance Quiz 3
1 / 50
Which of the following ratios is NOT from the set of Asset Management Ratios?
2 / 50
In capital budgeting, positive net present value results in_________________?
3 / 50
Bonds issued by corporations and exposed to default risk are classified as_________?
4 / 50
Standard Corporation sold fully depreciated equipment for Rs.5,000. This transaction will be reported on the cash flow statement as a(n):
5 / 50
In weighted average capital, capital structure weights estimation does not rely on value of__________?
6 / 50
Mr. Y and Mr. Z are planning to share their capital to run a business. They are going to employ which of the following type of business?
7 / 50
Legal entity separation from its legal owners and managers with help of state laws is classified as____________?
8 / 50
Redemption option which protects investors against rise in interest rate is considered as________?
9 / 50
How many years will it take to pay off a Rs. 11,000 loan with a Rs. 1,241.08 annual payment and a 5% interest rate?
10 / 50
In capital budgeting, number of non-normal cash flows have internal rate of returns are____________?
11 / 50
Chance of happening any unfavorable event in near future is classified as___________?
12 / 50
In cash flow estimation, depreciation shelters company?s income from_______?
13 / 50
If payment of security is paid as $100 at end of year for three years, it is an example of______________?
14 / 50
Other factors held constant, greater project liquidity is because of___________?
15 / 50
Sum of market risk and diversifiable risk are classified as total risk which is equivalent to_______________?
16 / 50
Coupon payment of bond which is fixed at time of issuance____________?
17 / 50
Maximizing Shareholder wealth:
18 / 50
A technique uses in comparative analysis of financial statement is_________?
19 / 50
The DuPont Identity tells us that Return on Equity is affected by:
20 / 50
A model which makes an assumption about the future growth of dividends is known as:
21 / 50
A risk associated with project and way considered by well diversified stockholder is classified as______________?
22 / 50
Type of financial security in which firms do not borrow money rather lease their assets is classified as____________________?
23 / 50
All assets are perfectly divisible and liquid in___________?
24 / 50
Payback period in which an expected cash flows are discounted with help of project cost of capital is classified as___________________?
25 / 50
High price to earnings ratio shows company?s_________?
26 / 50
The conflict of interest between stockholders and management is known as:
27 / 50
Projects which are mutually exclusive but different on scale of production or time of completion then the__________________?
28 / 50
In financial markets, period of maturity more than five years of financial instruments is classified as___________________?
29 / 50
Which of the following refers to the cash flows that result from the firm?s day-to-day activities of producing and selling?
30 / 50
A loan that is repaid on monthly, quarterly and annual basis in equal payments is classified as____________?
31 / 50
In capital asset pricing model, stock with high standard deviation tend to have________?
32 / 50
Forecast by analysts, retention growth model and historical growth rates are methods used for an______________?
33 / 50
Payment divided by par value is classified as______________?
34 / 50
Reinvestment risk of bond?s is usually higher on______?
35 / 50
Which of the following strategy belongs to restrictive policy regarding size of investments in current assets?
36 / 50
A point where profile of net present value crosses horizontal axis at plotted graph indicates project____________________?
37 / 50
Double declining balance method and sum of years digits are included in__________?
38 / 50
Portfolio which consists of perfectly positive correlated assets having no effect of___________?
39 / 50
In capital budgeting, an internal rate of return of project is classified as its__________?
40 / 50
According to capital asset pricing model assumptions, quantities of all assets are______________?
41 / 50
An uncovered cost at start of year is $200, full cash flow during recovery year is $400 and prior years to full recovery is 3 then payback would be__________?
42 / 50
A techniques uses to identify financial statements trends are included____________?
43 / 50
Capital gain expected by stockholders and dividends are included in____________?
44 / 50
An attitude of investor towards dealing with risk determines the____________?
45 / 50
Difference between actual return on stock and predicted return is considered as___________?
46 / 50
Real interest rate and real cash flows do not include_____________?
47 / 50
Set of projects or set of investments usually maximize firm value is classified as_________?
48 / 50
Variability for expected returns for projects is classified as___________?
49 / 50
Collection of net income, amortization and depreciation is divided by common shares outstanding to calculate______________?
50 / 50
A major facet of financial management involves providing the financing necessary to support:
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