Finance Quiz 3

1 / 50

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

2 / 50

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

3 / 50

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

4 / 50

**Reinvestment risk of bond?s is usually higher on______? **

5 / 50

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

6 / 50

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

7 / 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__________? **

8 / 50

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

9 / 50

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

10 / 50

**High price to earnings ratio shows company?s_________? **

11 / 50

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

12 / 50

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

13 / 50

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

14 / 50

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

15 / 50

**An attitude of investor towards dealing with risk determines the____________? **

16 / 50

**In capital budgeting, positive net present value results in_________________? **

17 / 50

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

18 / 50

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

19 / 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? **

20 / 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? **

21 / 50

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

22 / 50

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

23 / 50

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

24 / 50

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

25 / 50

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

26 / 50

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

27 / 50

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

28 / 50

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

29 / 50

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

30 / 50

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

31 / 50

**Variability for expected returns for projects is classified as___________? **

32 / 50

**All assets are perfectly divisible and liquid in___________? **

33 / 50

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

34 / 50

**A technique uses in comparative analysis of financial statement is_________? **

35 / 50

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

36 / 50

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

37 / 50

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

38 / 50

**A techniques uses to identify financial statements trends are included____________? **

39 / 50

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

40 / 50

**Capital gain expected by stockholders and dividends are included in____________? **

41 / 50

**Payment divided by par value is classified as______________? **

42 / 50

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

43 / 50

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

44 / 50

**Maximizing Shareholder wealth: **

45 / 50

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

46 / 50

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

47 / 50

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

48 / 50

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

49 / 50

**Real interest rate and real cash flows do not include_____________? **

50 / 50

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

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