0% 0 Finance Quiz 8 1 / 50 An outstanding bond are also classified as__________? Dated bonds Standing bonds Outdated bonds Seasoned bonds 2 / 50 Bonds issue by corporations which are more riskier than preferred stocks are classified as_____________? Leases Preferred stocks Common stocks Corporate stocks 3 / 50 Net income available to stockholders is $150 and total assets are $2,100 then return on total assets would be_________? 0.05 times 7.14% 7.15 times 0.07% 4 / 50 Cash flow from assets involves which of the following component(s)? Operating cash flow All of the given options Capital spending Change in net working capital 5 / 50 According to Black Scholes model, stocks with call option pays the__________? Past price No dividends Dividends Current price 6 / 50 Cash outflows are costs of project and are represented by___________? Relative number Negative numbers Positive numbers Hurdle number 7 / 50 Type of financial securities that mature in less than a year are classified as___________? Money market securities Saving intermediaries Discounted intermediaries Capital market securities 8 / 50 Financial security kept by non-financial corporations is____________________? Distribution cost Short term capital cost Short term treasury bills Deposit cheque 9 / 50 Future beta is needed to calculate in most situations is classified as____________? Historical betas Adjusted betas Standard betas Varied betas 10 / 50 Total amount of depreciation charged on long term assets is classified as______________? Accumulated depreciation Depleted depreciation Accumulated appreciation schedule Accumulated appreciation 11 / 50 Set of rules made by corporation founders such as directors election procedure are classified as_________? Liability laws By laws Corporate laws Stock laws 12 / 50 If you plan to save Rs. 5,000 with a bank at an interest rate of 8%, what will be the worth of your amount after 4 years if interest is compounded annually? Rs. 5,900 Rs. 5,400 Rs. 6,600 Rs. 6,802 13 / 50 High price to earning ratio shows company?s_____________? High marginal rate High risk prospect Low dividends paid High growth prospect 14 / 50 If net present value is positive, then profitability index will be__________? Greater than two Equal to Greater than one Less than one 15 / 50 Rate of return which is asked by investors is classified as_____________________? Average cost of capital Weighted cost of capital Mean cost of capital Weighted average cost of capital 16 / 50 A tighter probability distribution shows the___________? Peaked risk Expected risk Lower risk Higher risk 17 / 50 A bond whose price will rise above its face value is classified as________? Premium stock Premium warrants Premium bond Premium face value 18 / 50 The Board of Directors sets company-wide policy and advices the CEO and other senior executies, who manage the company?s: Day-to-Day activities Financial activities Managerial activities Year-to-Year activities 19 / 50 A company having a current ratio of 1 will have __________ net working capital. None of the given options Positive Negative zero 20 / 50 Net present value, profitability index, payback and discounted payback are methods to______________? Evaluate budgeting Evaluate equity Evaluate projects Evaluate cash flow 21 / 50 Process of selling company stock at large to general public and get lending from banks is classified as an_________________? Unprofessional offering External public offering Initial public offering Internal public offering 22 / 50 Collection of money from investors and spending money in other investment activities is classified as__________________? Future funds Pension funds Hedge funds Retirement funds 23 / 50 Who of the following make a broader use of accounting information? Auditors Marketers Accountants Financial Analysts 24 / 50 Projects which are mutually exclusive but different on scale of production or time of completion then the___________? External return method Internal return method Net future value method Net present value of method 25 / 50 Yield of interest rate which is below than coupon rate, this yield is classified as_________? Yield to call Yield to investors Yield to earning Yield to maturity 26 / 50 Cash inflows are revenues of project and are represented by__________? Hurdle number Negative numbers Relative number Positive numbers 27 / 50 Type of bonds that are issued by foreign governments or foreign corporations are classified as__________? Government bonds Zero bonds Zero risk bonds Foreign bonds 28 / 50 Corporations that buy financial instruments with money accepted from savers are classified as_________________? Insurance funds Mutual funds Credit funds Debit funds 29 / 50 The Capital Asset Pricing Model calculate expected: Return Risk and Return Risk None of the above 30 / 50 Company low earning power and high interest cost cause financial changes which have_____________? High return on equity Low return on equity High return on assets Low return on assets 31 / 50 Price per share is $30 and an earnings per share is $3.5 then price for earnings ratio would be_____________? 11% 0.11 times 8.57% 8.57 times 32 / 50 Coefficient of beta is used to measure stock volatility_____________? Same with market Ir-relative to market Coefficient of market Relative to market 33 / 50 In internal rate of returns, discount rate which forces net present values to become zero is classified as__________? Internal rate of return Negative rate of return External rate of return Positive rate of return 34 / 50 A standardized financial statement presenting all items of the statement as a percentage of total is: a cash flow statement a balance sheet a common-size statement an income statemen 35 / 50 Type of risk in which beta is equal to one is classified as____________? Multiple risk stock Total risk stock Varied risk stock Average risk stock 36 / 50 Bonds issued by government and backed by Pak government are classified as_________? Issued security U.S bonds Treasury bonds Return security 37 / 50 Full Form of BCCI ? Bank of Commerce and Cooperation International Bank of Central Cooperation International Bank of Credit and Commerce International None of These 38 / 50 Hewlett-Packard and Microsoft are examples of__________? Unlimited corporate business Corporation Controlled corporate business Limited corporate business 39 / 50 Ratios which relate firm?s stock to its book value per share, cash flow and earnings are classified as_________? Equity ratios Market value ratios Marginal ratios Return ratios 40 / 50 If we were studying a sample of 100 students and their examination performance and if the standard deviation of the list of results was say 14, then we could calculated the standard error by ___________? Dividing the standard deviation by the square root of the number of items in the sample Dividing the square root of the number of items in the sample by the mean Dividing standard deviation by number of items in the sample We cannot calculate standard error on account of inadequacy of information 41 / 50 A company who issues bonds or stocks in result raised funds which finally____________? Increases equity Decreases cash Increases liabilities Increases cash 42 / 50 Rate on debt that increases as soon market rises is classified as________? Floating rate debt Rising bet rate Stable debt rate Market rate debt 43 / 50 A series of constant cash flows that occur at the end of each period for some fixed number of periods is ____________ . multiple cash flows perpetuity annuity due an ordinary annuity 44 / 50 Greater value of option, larger span of time value is usually results in__________? Shorter put option Longer put option Longer call option Shorter call option 45 / 50 Financial corporations which serve individual savers and commercial mortgage borrowers are classified as____________? Savings and loans associations Preferred and common associations Savings associations Loans associations 46 / 50 Companies take savings as premium, invest in bonds and make payments to beneficiaries are classified as_____________? Credit unions Debit unions Auto purchases Life insurance companies 47 / 50 Markets dealing with residential loans, industry real estate loans, agricultural loans and commercial loans are called___________? Commercial markets Residential markets Agriculture markets Mortgage markets 48 / 50 If coupon rate is more than going rate of interest, then bond will be sold________? Below its par value Seasoned par value More than its par value At par value 49 / 50 In time value of money, nominal rate is_______________? Shown on timeline Divided on timeline Not shown on timeline Multiplied on timeline 50 / 50 Securities with less predictable prices and have longer maturity time is considered as_______________? Long-term investments Short-term investments Inventories Cash equivalents 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 7
