Finance Quiz 5
1 / 50
Which of the following refers to the difference between the sale price and cost of inventory?
2 / 50
Values recorded as determined in marketplace are considered as_______________?
3 / 50
Step in initial public offering in which hired agents act on behalf of owners is classified as______________?
4 / 50
Which of the following is the cheapest source of financing available to a firm?
5 / 50
Net income available to stockholders is $125 and total assets are $1,096 then return on common equity would be________?
6 / 50
Which of the following is not a quality of IRR ?
7 / 50
Current option price is added to present value of portfolio for calculating_________?
8 / 50
A market interest rate for specific type of bond is classified as bond?s_____________?
9 / 50
An income available for shareholders after deducting expenses and taxes from revenues is classified as______________?
10 / 50
Which of the given area is NOT addressed by Business Finance?
11 / 50
Which of the following relationships holds TRUE if a bond sells at a discount?
12 / 50
Money lends to corporations by banks is classified as___________?
13 / 50
In financial markets, period of maturity within one to five years of financial instruments is classified as_________________?
14 / 50
An annual estimated cost of assets uses up every year is included__________?
15 / 50
Finance is vital for which of the following business activity (activities)?
16 / 50
If you have Rs. 850 and you plan to save it for 4 years with an interest rate of 10%, what will be the future value of your savings?
17 / 50
Risk affects any firm with factors such as war, recessions, inflation and high interest rates is classified as____________?
18 / 50
Markets dealing loans of autos, education, vacations and appliances are considered as__________?
19 / 50
The formula to calculate the present value of a single cash flow is given by:
20 / 50
Corporations such as Citigroup, American Express and Fidelity are classified as__________________?
21 / 50
Which of the following statement is TRUE regarding debt?
22 / 50
The principal amount of a bond at issue is called____________?
23 / 50
Cash flows that could be generated from an owned asset by company but not use in project are classified as_________________?
24 / 50
Coupon rate of bond is also called____________?
25 / 50
Quick Ratio is also known as_________?
26 / 50
Type of options that permit bond holder to buy stocks at stated price are classified as______?
27 / 50
Financial security with low degree risk and investment held by businesses is classified as________________?
28 / 50
Which of the following ratios are intended to address the firm?s financial leverage?
29 / 50
Standard deviation is divided by expected rate of return is used to calculate_________?
30 / 50
Standard deviation of tighter probability distribution is____________?
31 / 50
According to capital asset pricing model assumptions, investors will borrow unlimited amount of capital at any given___________?
32 / 50
Stockholders that do not get benefits even if company?s earnings grow are classified as_____________?
33 / 50
Method of inventory recording gives lower cost of goods sold in income statement is classified as______________?
34 / 50
A type of project whose cash flows would not depend on each other is classified as______________?
35 / 50
An inflation rate includes in bond?s interest rates is one which is inflation rate________?
36 / 50
Companies that help to set benchmarks are classified as__________?
37 / 50
An interest rate which is used in calculation of cash flows of bonds is called______________?
38 / 50
Bonds which are riskier than corporate bonds and are issued by major corporations are classified as___________?
39 / 50
In time value of money, periodic rate is_________?
40 / 50
Which of the following is the process of planning and managing a firm?s long-term investments?
41 / 50
An uncovered cost at start of year is divided by full cash flow during recovery year then added in prior years to full recovery for calculating__________?
42 / 50
During planning period, a marginal cost for raising a new debt is classified as__________?
43 / 50
Situation in which firm limits expenditures on capital is classified as________?
44 / 50
External factors such as expiration of basic patents and industry competition effect____________?
45 / 50
Between the two identical bonds having different maturity periods, the price of the ______ bond will change less than that of ______ bond.
46 / 50
When the market?s required rate of return for a particular bond is much less than its coupon rate, the bond is selling at:
47 / 50
Correct measure of risk of stock is called_____________?
48 / 50
Beta coefficient is used to measure market risk which is an index of__________?
49 / 50
Price of an outstanding bond increases when market rate___________?
50 / 50
Number of years forecasted to recover an original investment is classified as________?
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