Finance Quiz 3

1 / 50

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

2 / 50

Variability for expected returns for projects is classified as___________?

3 / 50

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

4 / 50

Real interest rate and real cash flows do not include_____________?

5 / 50

Capital gain expected by stockholders and dividends are included in____________?

6 / 50

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

7 / 50

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

8 / 50

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

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

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

11 / 50

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

12 / 50

Payment divided by par value is classified as______________?

13 / 50

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

14 / 50

High price to earnings ratio shows company?s_________?

15 / 50

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

16 / 50

A techniques uses to identify financial statements trends are included____________?

17 / 50

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

18 / 50

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

19 / 50

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

20 / 50

A technique uses in comparative analysis of financial statement is_________?

21 / 50

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

22 / 50

Maximizing Shareholder wealth:

23 / 50

An attitude of investor towards dealing with risk determines the____________?

24 / 50

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

25 / 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?

26 / 50

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

27 / 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__________?

28 / 50

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

29 / 50

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

30 / 50

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

31 / 50

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

32 / 50

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

33 / 50

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

34 / 50

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

35 / 50

All assets are perfectly divisible and liquid in___________?

36 / 50

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

37 / 50

Reinvestment risk of bond?s is usually higher on______?

38 / 50

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

39 / 50

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

40 / 50

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

41 / 50

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

42 / 50

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

43 / 50

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

44 / 50

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

45 / 50

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

46 / 50

In capital budgeting, positive net present value results in_________________?

47 / 50

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

48 / 50

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

49 / 50

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

50 / 50

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

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