0% 0 Finance Quiz 7 1 / 50 Real rate expected cash flows and nominal rate expected cash flows must be______________? Inflated Accelerated Different Equal 2 / 50 Relationship between Economic Value Added (EVA) and Net Present Value (NPV) is considered as____________? Economic relationship Valued relationship Direct relationship Inverse relationship 3 / 50 Type of bond in which payments are made on basis of inflation index is classified as_____________? Purchasing power bond Surplus bond Borrowed bond Deficit bond 4 / 50 Market where market makers keep record of stock of financial instruments is classified as_________________? Face to face communication Outcry auction system Dealer market Stock market 5 / 50 Nominal rate which is quoted to consumers on loans is considered as__________? Loan rate of return Annual percentage rate Local rate of return Annual rate of return 6 / 50 Present value of future cash flows is divided by an initial cost of project to calculate_______? Negative index Exchange index Profitability index Project index 7 / 50 Number of shares outstanding if it is divided by net income for using to calculate___________? Dividends per share Market value of shares Book value of share Earning per share 8 / 50 Which of the following ratios are particularly interesting to shortterm creditors? Profitability Ratios Liquidity Ratios Long-term Solvency Ratios Market Value Ratios 9 / 50 Accounts payable, accruals and notes payable are listed on balance sheet as________? Current liabilities Accumulated liabilities Non-current liabilities Accrued liabilities 10 / 50 In mutually exclusive projects, project which is selected for comparison with others must have____________? Higher net present value Zero net present value All of above Lower net present value 11 / 50 A type of beta which incorporates about company such as changes in capital structure is classified as___________? Industry Beta Fundamental Beta Subtracted Beta Market Beta 12 / 50 According to Black Scholes model, selling and buying of stock have_______? No discounts Transaction costs Discount rate No transaction costs 13 / 50 Transfer through institutions such as mutual funds or banks are classified as________________? Non-financial intermediary Discounted intermediary Savers intermediary Financial intermediary 14 / 50 Which of the following statement about bond ratings is TRUE? None of the given options Bond ratings are based solely on information acquired from sources other than the bond issuer. Bond ratings are typically paid for by a company?s bondholders. Bond ratings represent an independent assessment of the credit-worthiness of bonds. 15 / 50 In capital budgeting, term of bond which has great sensitivity to interest rates is______________? Internal term bonds External term bonds Long-term bonds Short-term bonds 16 / 50 An increase in value of option leads to low present value of exercise cost only if it has____________? High volatility Interest rates are high Interest rates are low Low volatility 17 / 50 An internal rate of return in capital budgeting can be modified to make it representative of_________? Relative outflow Relative inflow Relative profitability Relative cost 18 / 50 _______________refers to the extent to which fixed-income securities (debt and preferred stock) are used in a firm?s capital structure? Portfolio risk Market risk Financial risk Operating risk 19 / 50 An annuity with an extended life is classified as_____________? Deferred perpetuity Extended life Perpetuity Due perpetuity 20 / 50 An Asset is __________? Sources of funds Use of funds None of these Inflow of funds 21 / 50 An information uses by investors for expecting future earnings is all recorded in__________? Exchange report Five years report Stock report Annual report 22 / 50 In cash flow estimation and risk analysis, real rate will be equal to nominal rate if there is__________? High inflation No transactions No acceleration No inflation 23 / 50 Condition in which company?s imports are more than its exports is classified as____________? Trade surplus Foreign trade deficits Foreign trade Foreign trade surplus 24 / 50 If market value is greater than book value, then investors for future stock are considered as___________________? Pessimistic Experienced Inexperienced Optimistic 25 / 50 Beta reflects stock risk for investors which is usually_________? Linear Collective Weighted Individual 26 / 50 Right held with corporations to call issued bonds for redemption is considered as___________? Artificial provision Original provision Redeem provision Call provision 27 / 50 Income that is saved and not invested is known as____________? None Deposit Capital Hoarding 28 / 50 Which of the following set of ratios relates the market price of the firm?s common stock to selected financial statement items? Market Value Ratios Leverage Ratios Profitability Ratios Liquidity Ratios 29 / 50 Betas tend to move towards 1.0 with passage of time are classified as__________? Adjusted betas Standard betas Varied betas Historical betas 30 / 50 A markets which deals with long-term corporate stocks are classified as Liquid markets Short-term markets Money markets Capital markets 31 / 50 If two independent projects having hurdle rate, then both projects should________? Be accepted Have capital acceptance Not be accepted Have return rate acceptance 32 / 50 A technique uses in comparative analysis of financial statement is____________? Preference analysis Returning analysis Common size analysis Graphical analysis 33 / 50 The market price of a firm?s stock represents the focal judgment of all market participants as to the value of the: Particular firm Particular debtor Particular market Particular creditor 34 / 50 A price for equity is called______________? Investment return Debt rate Cost of equity Interest rate 35 / 50 Dow Jones is stock exchange market of__________? New York Tokyo London None of these 36 / 50 Two alternative expected returns are compared with help of__________? Coefficient of return Coefficient of variation Coefficient of standard Coefficient of deviation 37 / 50 If coupon rate is less than going rate of interest, then bond will be sold________? Seasoned par value At par value Seasoned par value More than its par value 38 / 50 The use of Personal borrowing to alter the degree of financial leverage is called__________? Financial leverage Operating leverage None of the given option Homemade leverage 39 / 50 In cash flow estimation, depreciation is considered as________________? Cash charge Net salvage discount Cash flow discounts Non cash charge 40 / 50 Document in a corporation which consists of amount of stock, name and addresses of directors is classified as_____________? Charter Corporation paperwork Stock planning Liability plan 41 / 50 An individual authorized by another person, called the principle, to act on the latter?s on behalf is known as an/a: Subordinate Servant Agent Assistant 42 / 50 In estimating value of cash flows, compounded future value is classified as its__________? Existed value Terminal value Quit value Relative value 43 / 50 Risk which is caused by events such as strikes, unsuccessful marketing programs and other lawsuits is classified as____________? Market risk Stock risk Portfolio risk Diversifiable risk 44 / 50 Loans by finance companies, banks and credit unions is classified as___________? Consumer credit loans Dollar bonds Eurodollar market deposits Euro bonds 45 / 50 Purchase cost of assets over its useful life is classified as_________? Appreciated liabilities Appreciated assets Depreciation Appreciation 46 / 50 Positive minimum risk portfolio of any security shows that market security sold____________? Equal to original price Greater than original price Less than original price Equal to sum of stocks 47 / 50 Which of the following is measured by retention ratio? Asset use efficiency Dividend policy Financial policy Operating efficiency 48 / 50 Profit margin multiply assets turnover multiply equity multiplier is used to calculate____________? Return on stock Return on assets Return on turnover Return on equity 49 / 50 Cash flow which starts negative than positive then again positive cash flow is classified as__________? Non-normal cash flow Normal costs Non-normal costs Normal cash flow 50 / 50 Financial security issued by banks operating outside U.S is classified as___________________? Euro bonds Dollar bonds Eurodollar market deposits Euro deposits Provide Your Information Your score is The average score is 0% LinkedIn Facebook Twitter 0% Restart quiz Send feedback Share on facebook Facebook Share on twitter Twitter Share on whatsapp WhatsApp PrevFinance Quiz 6 Finance Quiz 8Next
