Finance Quiz 3

Variability for expected returns for projects is classified as___________?

In financial markets, period of maturity more than five years of financial instruments is classified as___________________?

Standard Corporation sold fully depreciated equipment for Rs.5,000. This transaction will be reported on the cash flow statement as a(n):

Set of projects or set of investments usually maximize firm value is classified as_________?

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__________?

A technique uses in comparative analysis of financial statement is_________?

A major facet of financial management involves providing the financing necessary to support:

A model which makes an assumption about the future growth of dividends is known as:

In capital budgeting, an internal rate of return of project is classified as its__________?

If payment of security is paid as $100 at end of year for three years, it is an example of______________?

Double declining balance method and sum of years digits are included in__________?

Coupon payment of bond which is fixed at time of issuance____________?

Redemption option which protects investors against rise in interest rate is considered as________?

Reinvestment risk of bond?s is usually higher on______?

A point where profile of net present value crosses horizontal axis at plotted graph indicates project____________________?

Real interest rate and real cash flows do not include_____________?

Capital gain expected by stockholders and dividends are included in____________?

Forecast by analysts, retention growth model and historical growth rates are methods used for an______________?

Collection of net income, amortization and depreciation is divided by common shares outstanding to calculate______________?

In capital asset pricing model, stock with high standard deviation tend to have________?

Bonds issued by corporations and exposed to default risk are classified as_________?

A risk associated with project and way considered by well diversified stockholder is classified as______________?

Difference between actual return on stock and predicted return is considered as___________?

Maximizing Shareholder wealth:

The DuPont Identity tells us that Return on Equity is affected by:

In capital budgeting, number of non-normal cash flows have internal rate of returns are____________?

The conflict of interest between stockholders and management is known as:

Chance of happening any unfavorable event in near future is classified as___________?

In cash flow estimation, depreciation shelters company?s income from_______?

A techniques uses to identify financial statements trends are included____________?

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?

Which of the following ratios is NOT from the set of Asset Management Ratios?

In capital budgeting, positive net present value results in_________________?

Other factors held constant, greater project liquidity is because of___________?

Sum of market risk and diversifiable risk are classified as total risk which is equivalent to_______________?

According to capital asset pricing model assumptions, quantities of all assets are______________?

An attitude of investor towards dealing with risk determines the____________?

Which of the following refers to the cash flows that result from the firm?s day-to-day activities of producing and selling?

Projects which are mutually exclusive but different on scale of production or time of completion then the__________________?

Payback period in which an expected cash flows are discounted with help of project cost of capital is classified as___________________?

Type of financial security in which firms do not borrow money rather lease their assets is classified as____________________?

Which of the following strategy belongs to restrictive policy regarding size of investments in current assets?

Legal entity separation from its legal owners and managers with help of state laws is classified as____________?

A loan that is repaid on monthly, quarterly and annual basis in equal payments is classified as____________?

Payment divided by par value is classified as______________?

High price to earnings ratio shows company?s_________?

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?

In weighted average capital, capital structure weights estimation does not rely on value of__________?

Portfolio which consists of perfectly positive correlated assets having no effect of___________?

All assets are perfectly divisible and liquid in___________?