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