MGT 201 Mega Quiz File Solved

8/10/2019 MGT 201 Mega Quiz File Solved

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MGT 201 - Financial ManagementMega Quiz file solved by Muhammad Afaaq

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Question < 1 of 1 =ta!t time7 0 72>7 $ AM . Total Ma!&s7 1?hich of the follo9ing could @%T be defined as the ca5ital st!uctu!e of the

,om5any=elect co!!ect o5tion7 The fi!mBs miC of Assets and liabilities The fi!mBs common stoc&s only The fi!mBs debt-equity !atio All of the given o5tionsQuestion < 2 of 1 =ta!t time7 0 72 7/1 AM . Total Ma!&s7 1
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?hich of the follo9ing is @%T an eCam5le of hyb!id equity=elect co!!ect o5tion7 ,onve!tible *onds ,onve!tible 4ebentu!e

,ommon sha!es )!efe!!ed sha!es

Question < $ of 1 =ta!t time7 0 7$071 AM . Total Ma!&s7 1?hich of the follo9ing should be included 9hile calculating the cash flo9sassociated 9ith a 5!o6ect=elect co!!ect o5tion7 ,ash flo9s at the time of investment ,ash flo9s du!ing the life of 5!o6ect

,ash flo9s at the te!mination date All of the given o5tionsQuestion < / of 1 =ta!t time7 0 7$172> AM . Total Ma!&s7 1?hich of the follo9ing is ty5e a Tem5o!a!y Account=elect co!!ect o5tion7 Asset Diability 'ese!ves 'evenue

Question < of 1 =ta!t time7 0 7$17 AM . Total Ma!&s7 1The ove!all 9eighted ave!age. cost of ca5ital is com5osed of 9eightedave!ages of 9hich of the follo9ing=elect co!!ect o5tion7 The cost of common equity and the cost of debt The cost of common equity and the cost of 5!efe!!ed stoc& The cost of 5!efe!!ed stoc& and the cost of debt The cost of common equityE the cost of 5!efe!!ed stoc&E and the costof debt

Question < of 1 =ta!t time7 0 7$27/ AM . Total Ma!&s7 1?hich of the follo9ing could be defined as the ca5ital st!uctu!e of the,om5any=elect co!!ect o5tion7 The fi!mBs miC of diffe!ent secu!ities


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The fi!mBs debt-equity !atio The ma!&et im5e!fection that the fi!mBs manage! can eC5loit All of the above

Question < of 1 =ta!t time7 0 7$$71$ AM . Total Ma!&s7 15on 9hich of the follo9ing a fi!mBs deg!ee of o5e!ating leve!age 4%D.de5ends 5!ima!ily=elect co!!ect o5tion7 =ales va!iability Devel of fiCed o5e!ating costs ,loseness to its o5e!ating b!ea&-even 5oint 4ebt-to-equity !atio

Question < > of 1 =ta!t time7 0 7$$7 2 AM . Total Ma!&s7 1,onside! t9o bondsE A and *# *oth bonds 5!esently a!e selling at thei! 5a!value of 's# 1E000# Hach 5ays inte!est of 's# 120 annually# *ond A 9ill matu!ein yea!s 9hile bond * 9ill matu!e in yea!s# 3f the yields to matu!ity onthe t9o bonds change f!om 12I to 10IE #=elect co!!ect o5tion7 *oth bonds 9ill inc!ease in valueE but bond A 9ill inc!ease mo!e thanbond * *oth bonds 9ill inc!ease in valueE but bond * 9ill inc!ease mo!e thanbond A *oth bonds 9ill dec!ease in valueE but bond A 9ill dec!ease mo!e thanbond * *oth bonds 9ill dec!ease in valueE but bond * 9ill dec!ease mo!e thanbond A

Question < of 1 =ta!t time7 0 7$/72 AM . Total Ma!&s7 1The eC5licit costs associated 9ith co!5o!ate defaultE such as legal eC5ensesEa!e the of the fi!m#=elect co!!ect o5tion7 Flotation costs 4efault beta coefficients 4i!ect ban&!u5tcy costs 3ndi!ect ban&!u5tcy costs


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Question < 10 of 1 =ta!t time7 0 7$ 700 AM . Total Ma!&s7 1?hich of the follo9ing 5o!tfolio statistics statements is co!!ect=elect co!!ect o5tion7 A 5o!tfolioBs eC5ected !etu!n is a sim5le 9eighted ave!age of eC5ected

!etu!ns of the individual secu!ities com5!ising the 5o!tfolio# A 5o!tfolioBs standa!d deviation of !etu!n is a sim5le 9eighted ave!ageof individual secu!ity !etu!n standa!d deviations# The squa!e !oot of a 5o!tfolioBs standa!d deviation of !etu!n equals itsva!iance# The squa!e !oot of a 5o!tfolioBs standa!d deviation of !etu!n equals itscoefficient of va!iation#

Question < 11 of 1 =ta!t time7 0 7$ 7$ AM . Total Ma!&s7 1

,alculate the b!ea&-even 5oint fo! sales !evenues given the follo9inginfo!mation# The fi!m has 's#1E 000E000 in fiCed costs# The fi!m antici5atesthat va!iable costs 9ill be 's#1 fo! eve!y 's# in sales#=elect co!!ect o5tion7 's#1E 2 0E000 's#1E 000E000 's#2 0E 000 's#200E 000

Question < 12 of 1 =ta!t time7 0 7$ 702 AM . Total Ma!&s7 1?hich of the follo9ing equation is @%T co!!ect=elect co!!ect o5tion7 G!oss 'evenue J Admin K %5e!ating HC5enses L %5e!ating 'evenue %the! HC5enses %the! 'evenue L H*3T H*3T J Financial ,ha!ges K 3nte!est L H*T @et 3ncome J 4ividends L 'etained Ha!ning

Question < 1$ of 1 =ta!t time7 0 7$ 7/0 AM . Total Ma!&s7 13f 2 stoc&s move in the same di!ection togethe! then 9hat 9ill be theco!!elation coefficient=elect co!!ect o5tion7 0 1#0 -1#0 1#


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Question < 1/ of 1 =ta!t time7 0 7$ 702 AM . Total Ma!&s7 1?hich of the follo9ing is @%T an eCam5le of a financial inte!media!y=elect co!!ect o5tion7

?isconsin =KDE a savings and loan association =t!ong ,a5ital A55!eciationE a mutual fund Mic!osoft ,o!5o!ationE a soft9a!e fi!m ,ollege ,!editE a c!edit union

Question < 1 of 1 =ta!t time7 0 7$ 72 AM . Total Ma!&s7 1?hich of the follo9ing could be ta&en same as minimizing the 9eightedave!age cost of ca5ital=elect co!!ect o5tion7

MaCimizing the ma!&et value of the fi!m MaCimizing the ma!&et value of the fi!m only if MMBs )!o5osition 3 Minimizing the ma!&et value of the fi!m only if MMBs )!o5osition 3 holds MaCimizing the 5!ofits of the fi!m

=ent at 7$ AM on ?ednesday Quiz =ta!t Time7 0 7/2 AMTime Deft sec s.Question < 2 of 1 =ta!t time7 0 7/ 7$ AM . Total Ma!&s7 1?hich of the follo9ing is the maCimum amount of debt and othe! fiCed-cha!ge financing. that a fi!m can adequately se!vice=elect co!!ect o5tion7 4ebt ca5acity 4ebt-se!vice bu!den Adequacy ca5acity FiCed-cha!ge bu!den

Quiz =ta!t Time7 0 7/2 AMTime Deft sec s.Question < of 1 =ta!t time7 0 7 $71 AM . Total Ma!&s7 1An a!bit!age o55o!tunity eCists if an investo! can const!uct a investment 5o!tfolio that 9ill yield a su!e 5!ofit#


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=elect co!!ect o5tion7 )ositive @egative Ne!o

All of the above

Question < of 1 =ta!t time7 0 7 $7/$ AM . Total Ma!&s7 15on 9hich of the follo9ing a fi!mBs deg!ee of o5e!ating leve!age 4%D.

de5ends 5!ima!ily=elect co!!ect o5tion7 =ales va!iability Devel of fiCed o5e!ating costs ,loseness to its o5e!ating b!ea&-even 5oint

4ebt-to-equity !atioQuestion < > of 1 =ta!t time7 0 7 /70 AM . Total Ma!&s7 1?hich of the follo9ing is the maCimum amount of debt and othe! fiCed-cha!ge financing. that a fi!m can adequately se!vice=elect co!!ect o5tion7 4ebt ca5acity 4ebt-se!vice bu!den Adequacy ca5acity FiCed-cha!ge bu!den

Question < of 1 =ta!t time7 0 7 /72 AM . Total Ma!&s7 1?he!e the stoc& 5oints 9ill lieE if a stoc& is a 5a!t of totally dive!sified5o!tfolio=elect co!!ect o5tion7 3t 9ill lie belo9 the !eg!ession line 3t 9ill line above the !eg!ession line 3t 9ill line eCactly on the !eg!ession line 3t 9ill be tangent to the !eg!ession line

Question < 10 of 1 =ta!t time7 0 7 /7 AM . Total Ma!&s7 1A set of 5ossible values that a !andom va!iable can assume and thei!associated 5!obabilities of occu!!ence a!e !efe!!ed to as #=elect co!!ect o5tion7 )!obability dist!ibution


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The eC5ected !etu!n The standa!d deviation ,oefficient of va!iation

Question < 11 of 1 =ta!t time7 0 7 720 AM . Total Ma!&s7 1The the coefficient of va!iation the !elative !is& of theinvestment#=elect co!!ect o5tion7 Da!ge!O Da!ge! Da!ge!O =malle! =malle!O Da!ge! =malle!O =malle!

Question < 12 of 1 =ta!t time7 0 7 7/0 AM . Total Ma!&s7 1(ou a!e conside!ing t9o investment 5!o5osalsE 5!o6ect A and 5!o6ect *# *BseC5ected net 5!esent value is 's# 1E000 g!eate! than that fo! A and ABsdis5e!sion of net 5!esent value is less than that fo! *# %n the basis of !is&and !etu!nE 9hat 9ould be you! conclusion=elect co!!ect o5tion7 )!o6ect A dominates 5!o6ect * )!o6ect * dominates 5!o6ect A @eithe! 5!o6ect dominates the othe! in te!ms of !is& and !etu!n 3ncom5lete info!mation

Question < 1$ of 1 =ta!t time7 0 7 7 > AM . Total Ma!&s7 1?hich of the follo9ing could be ta&en same as minimizing the 9eightedave!age cost of ca5ital=elect co!!ect o5tion7 MaCimizing the ma!&et value of the fi!m MaCimizing the ma!&et value of the fi!m only if MMBs )!o5osition 3 Minimizing the ma!&et value of the fi!m only if MMBs )!o5osition 3 holds MaCimizing the 5!ofits of the fi!m

Question < 1/ of 1 =ta!t time7 0 7 722 AM . Total Ma!&s7 1?hich of the follo9ing statements is T' H !ega!ding )e!manent Accounts=elect co!!ect o5tion7 Accounts that a!e found on 3ncome =tatement Accounts that a!e found on =tatement of 'etained Ha!nings


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Accounts that a!e found on *alance =heet All of the given o5tions

Question < 1 of 1 =ta!t time7 0 7 7/ AM . Total Ma!&s7 1

?hy com5anies invest in 5!o6ects 9ith negative @)P=elect co!!ect o5tion7 *ecause the!e is hidden value in each 5!o6ect *ecause the!e may be chance of !a5id g!o9th *ecause they have invested a lot All of the given o5tions

Question < 1 of 1 =ta!t time7 0 7 7 AM . Total Ma!&s7 1Total 5o!tfolio !is& is #

=elect co!!ect o5tion7 Hqual to systematic !is& 5lus non-dive!sifiable !is& Hqual to avoidable !is& 5lus dive!sifiable !is& Hqual to systematic !is& 5lus unavoidable !is& Hqual to systematic !is& 5lus dive!sifiable !is&

Question < 2 of 1 =ta!t time7 107007 2 AM . Total Ma!&s7 1A statistical measu!e of the va!iability of a dist!ibution a!ound its mean is!efe!!ed to as #=elect co!!ect o5tion7 )!obability dist!ibution HC5ected !etu!n =tanda!d deviation ,oefficient of va!iation

Question < $ of 1 =ta!t time7 1070171> AM . Total Ma!&s7 1?ho o! 9hat is a 5e!son o! institution designated by a bond issue! as theofficial !e5!esentative of the bondholde!s=elect co!!ect o5tion7 3ndentu!e 4ebentu!e *ond *ond t!usteeQuestion < / of 1 =ta!t time7 107017$ AM . Total Ma!&s7 1

5on 9hich of the follo9ing a fi!mBs deg!ee of o5e!ating leve!age 4%D.


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de5ends 5!ima!ily=elect co!!ect o5tion7 =ales va!iability Devel of fiCed o5e!ating costs

,loseness to its o5e!ating b!ea&-even 5oint 4ebt-to-equity !atio

Question < of 1 =ta!t time7 10702700 AM . Total Ma!&s7 1The the coefficient of va!iation the !elative !is& of theinvestment#=elect co!!ect o5tion7 Da!ge!O Da!ge! Da!ge!O =malle!

=malle!O Da!ge! =malle!O =malle!

Question < of 1 =ta!t time7 1070272$ AM . Total Ma!&s7 1?hich of the follo9ing is ty5e a Tem5o!a!y Account=elect co!!ect o5tion7 Asset Diability 'ese!ves 'evenue

Question < of 1 =ta!t time7 107027 0 AM . Total Ma!&s7 1?hat should be the focal 5oint of financial management in a fi!m=elect co!!ect o5tion7 The numbe! and ty5es of 5!oducts o! se!vices 5!ovided by the fi!m The minimization of the amount of taCes 5aid by the fi!m The c!eation of value fo! sha!eholde!s The dolla!s 5!ofits ea!ned by the fi!m

Question < > of 1 =ta!t time7 1070$71$ AM . Total Ma!&s7 1?he!e the stoc& 5oints 9ill lieE if a stoc& is a 5a!t of totally dive!sified5o!tfolio=elect co!!ect o5tion7 3t 9ill lie belo9 the !eg!ession line 3t 9ill line above the !eg!ession line


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3t 9ill line eCactly on the !eg!ession line 3t 9ill be tangent to the !eg!ession line

Question < of 1 =ta!t time7 1070$7$ AM . Total Ma!&s7 1

a!e also &no9n as =5ontaneous Financing#=elect co!!ect o5tion7 ,u!!ent liabilities ,u!!ent assets FiCed assets Dong-te!m liabilities

Question < 10 of 1 =ta!t time7 1070$7 / AM . Total Ma!&s7 1The '*= 5ays # 0IE com5ounded daily based on $ 0 days.E on a -month

ce!tificate of de5ositE if you de5osit 's#20E 000 you 9ould eC5ect to ea!na!ound in inte!est#=elect co!!ect o5tion7 's#>/0 's#> > 's#1E0$2 's#1E121

Question < 11 of 1 =ta!t time7 1070/71$ AM . Total Ma!&s7 1The logic behind is that instead of loo&ing at net cash flo9s youloo& at cash inflo9s and outflo9s se5a!ately fo! each 5oint in time#=elect co!!ect o5tion7 3'' M3'' )P @)P

Question < 12 of 1 =ta!t time7 1070/7$$ AM . Total Ma!&s7 1?hich of the follo9ing facto! s. do @%T affects the movements in thema!&et indeC=elect co!!ect o5tion7 Mac!oeconomic facto!s =ocio 5olitical facto!s =ocial facto!s All of the given o5tions


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Question < 1$ of 1 =ta!t time7 1070/7 AM . Total Ma!&s7 1?hich of the follo9ing is as H*3T=elect co!!ect o5tion7

Funds 5!ovided by o5e!ations Ha!nings befo!e taCes @et income %5e!ating 5!ofit

Question < 1/ of 1 =ta!t time7 1070 71$ AM . Total Ma!&s7 1?hich of the follo9ing !efe!s to a 5olicy of dividend smoothing=elect co!!ect o5tion7 Maintaining a constant dividend 5ayout !atio

Ree5ing the !egula! dividend at the same level indefinitely Maintaining a steady 5!og!ession of dividend inc!eases ove! time Alte!nating cash dividends 9ith stoc& dividends

Question < 1 of 1 =ta!t time7 1070 7/$ AM . Total Ma!&s7 13f !is& and !etu!n combination of any stoc& is above the =MDE 9hat does itmean=elect co!!ect o5tion7 3t is offe!ing lo9e! !ate of !etu!n as com5a!ed to the efficient stoc& 3t is offe!ing highe! !ate of !etu!n as com5a!ed to the efficient stoc& 3ts !ate of !etu!n is ze!o as com5a!ed to the efficient stoc& 3t is offe!ing !ate of !etu!n equal to the efficient stoc&

Question < 1 of 1 =ta!t time7 1071070$ AM . Total Ma!&s7 1?hich of the follo9ing is @%T an eCam5le of hyb!id equity=elect co!!ect o5tion7 ,onve!tible *onds ,onve!tible 4ebentu!e ,ommon sha!es )!efe!!ed sha!es

Question < $ of 1 =ta!t time7 10711700 AM . Total Ma!&s7 1?hat should be used to calculate the 5!o5o!tional amount of equity financingem5loyed by a fi!m=elect co!!ect o5tion7


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The common stoc& equity account on the fi!mBs balance sheet The sum of common stoc& and 5!efe!!ed stoc& on the balance sheet The boo& value of the fi!m The cu!!ent ma!&et 5!ice 5e! sha!e of common stoc& times the numbe!

of sha!es %utstanding

Question < of 1 =ta!t time7 1071272$ AM . Total Ma!&s7 1?hich of the follo9ing is !elated to the use Do9e! financial leve!age=elect co!!ect o5tion7 FiCed costs Pa!iable costs 4ebt financing ,ommon equity financing

Question < of 1 =ta!t time7 107127/ AM . Total Ma!&s7 1A -yea! o!dina!y annuity has a 5!esent value of 's#1E000# 3f the inte!est!ate is > 5e!centE the amount of each annuity 5ayment is closest to 9hich ofthe follo9ing=elect co!!ect o5tion7 's# 2 0#// 's# 2$1# 1 's#1>1# 2 's#1>/#0>

Question < of 1 =ta!t time7 1071$70> AM . Total Ma!&s7 1The ob6ective of financial management is to maCimize 9ealth#=elect co!!ect o5tion7 =ta&eholde!s =ha!eholde!s *ondholde!s 4i!ecto!s

Question < > of 1 =ta!t time7 1071$7$2 AM . Total Ma!&s7 1?hich of the follo9ing sti5ulate a !elationshi5 bet9een eC5ected !etu!n and!is&=elect co!!ect o5tion7 A)T sti5ulates ,A)M sti5ulates


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*oth ,A)M and A)T sti5ulate @eithe! ,A)M no! A)T sti5ulate

Question < of 1 =ta!t time7 1071$7 1 AM . Total Ma!&s7 1

?hich ty5e of !es5onsibilities a!e 5!ima!ily assigned to ,ont!olle! andT!easu!e! !es5ectively=elect co!!ect o5tion7 %5e!ationalO financial management Financial managementO accounting AccountingO financial management Financial managementO o5e!ations

Question < 11 of 1 =ta!t time7 1071/72 AM . Total Ma!&s7 1

The stoc& in you! 5o!tfolio 9as selling fo! 's#/0 5e! sha!e yeste!dayE buthas today decla!ed a th!ee fo! t9o s5lit# ?hich of the follo9ing statementsseems to be t!ue=elect co!!ect o5tion7 The!e 9ill be t9o-thi!ds as many sha!es outstandingE and they 9ill sellfo! 's# 0#00 each The!e 9ill be fou! times as many sha!es outstandingE and they 9ill sellfo! 's#1 0#00 each The!e 9ill be 0 5e!cent mo!e sha!es outstanding and they 9ill sell fo!'s#2 # each The!e 9ill be one-and-one-half times as many sha!es outstandingE andthey 9ill sell fo! 's# 0#00 each

Question < 12 of 1 =ta!t time7 1071 701 AM . Total Ma!&s7 1?hich of the follo9ing is co!!ect !ega!ding the o55o!tunity cost of ca5italfo! a 5!o6ect=elect co!!ect o5tion7 The o55o!tunity cost of ca5ital is the !etu!n that investo!s give u5 byinvesting in the 5!o6ect !athe! than in secu!ities of equivalent !is Financial manage!s use the ca5ital asset 5!icing model to estimate theo55o!tunity cost of ca5ital The com5any cost of ca5ital is the eC5ected !ate of !etu!n demandedby investo!s in a com5any All of the given o5tions


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Question < 1$ of 1 =ta!t time7 1071 720 AM . Total Ma!&s7 1?hen taCes a!e conside!edE the value of a leve!ed fi!m equals the value ofthe #=elect co!!ect o5tion7

nleve!ed fi!m nleve!ed fi!m 5lus the value of the debt nleve!ed fi!m 5lus the 5!esent value of the taC shield nleve!ed fi!m 5lus the value of the debt 5lus the value of the taCshield

Question < 1/ of 1 =ta!t time7 1071 7 0 AM . Total Ma!&s7 1?hich of the follo9ing is the cash !equi!ed du!ing a s5ecific 5e!iod to meetinte!est eC5enses and 5!inci5al 5ayments

=elect co!!ect o5tion7 4ebt ca5acity 4ebt-se!vice bu!den Adequacy ca5acity FiCed-cha!ge bu!den

Question < 1 of 1 =ta!t time7 1071 71/ AM . Total Ma!&s7 1@ominal 3nte!est 'ate is also &no9n as7=elect co!!ect o5tion7 Hffective inte!est 'ate Annual 5e!centage !ate )e!iodic inte!est !ate 'equi!ed inte!est !ate

Question < 1 of 1 =ta!t time7 0 70$7$2 AM . Total Ma!&s7 1?hat should be the focal 5oint of financial management in a fi!m

=elect co!!ect o5tion7The numbe! and ty5es of 5!oducts o! se!vices 5!ovided by the fi!mThe minimization of the amount of taCes 5aid by the fi!mThe c!eation of value fo! sha!eholde!s


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The dolla!s 5!ofits ea!ned by the fi!m

Question < 2 of 1 =ta!t time7 0 70/710 AM . Total Ma!&s7 1So9 =ha!eholde! 9ealth is !e5!esented in a fi!m

=elect co!!ect o5tion7The numbe! of 5eo5le em5loyed in the fi!mThe boo& value of the fi!mBs assets less the boo& value of its liabilitiesThe ma!&et 5!ice 5e! sha!e of the fi!mBs common stoc&The amount of sala!y 5aid to its em5loyees

Question < $ of 1 =ta!t time7 0 70/7$ AM . Total Ma!&s7 1Hffective inte!est !ate is diffe!ent f!om nominal !ate of inte!est because7

=elect co!!ect o5tion7@ominal inte!est !ate igno!es com5ounding@ominal inte!est !ate includes f!equency of com5ounding)e!iodic inte!est !ate igno!es the effect of inflationAll of the given o5tions

Question < / of 1 =ta!t time7 0 70/7 2 AM . Total Ma!&s7 1 is equal to common sha!eholde!sB equity8common sha!esoutstanding.#

=elect co!!ect o5tion7*oo& value 5e! sha!eDiquidation value 5e! sha!eMa!&et value 5e! sha!e@one of the above

Question < of 1 =ta!t time7 0 70 70/ AM . Total Ma!&s7 1?hich one of the follo9ing selects the combination of investment 5!o5osalsthat 9ill


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5!ovide the g!eatest inc!ease in the value of the fi!m 9ithin the budgetceiling const!aint=elect co!!ect o5tion7,ash budgeting

,a5ital budgeting,a5ital !ationing,a5ital eC5enditu!e

Question < of 1 =ta!t time7 0 70 702 AM . Total Ma!&s7 1,om5anies and individuals !unning diffe!ent ty5es of businesses have toma&e the choices of the asset acco!ding to 9hich of the follo9ing

=elect co!!ect o5tion7Dife s5an of the 5!o6ect,ost of the ca5ital'etu!n on asset@one of the given o5tions

Question < of 1 =ta!t time7 0 70 710 AM . Total Ma!&s7 1?hich of the follo9ing is as H*3T

=elect co!!ect o5tion7Funds 5!ovided by o5e!ationsHa!nings befo!e taCes@et income%5e!ating 5!ofit

Question < > of 1 =ta!t time7 0 70 7$ AM . Total Ma!&s7 1The '*= 5ays # 0IE com5ounded daily based on $ 0 days.E on a -monthce!tificate of de5ositE if you de5osit 's#20E 000 you 9ould eC5ect to ea!na!ound in inte!est#

=elect co!!ect o5tion7's#>/0's#> >'s#1E0$2


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's#1E121

Question < of 1 =ta!t time7 0 70>70 AM . Total Ma!&s7 15on 9hich of the follo9ing a fi!mBs deg!ee of o5e!ating leve!age 4%D.

de5ends 5!ima!ily

=elect co!!ect o5tion7=ales va!iabilityDevel of fiCed o5e!ating costs,loseness to its o5e!ating

Question < 10 of 1 =ta!t time7 0 70>72> AM . Total Ma!&s7 1

The value of the bond is @%T di!ectly tied to the value of 9hich of thefollo9ing assets

=elect co!!ect o5tion7'eal assets of the businessDiquid assets of the businessFiCed assets of the businessDong te!m assets of the business

Question < 11 of 1 =ta!t time7 0 70>7/ AM . Total Ma!&s7 1The ove!all 9eighted ave!age. cost of ca5ital is com5osed of 9eightedave!ages of 9hich of the follo9ing

=elect co!!ect o5tion7The cost of common equity and the cost of debtThe cost of common equity and the cost of 5!efe!!ed stoc&The cost of 5!efe!!ed stoc& and the cost of debtThe cost of common equityE the cost of 5!efe!!ed stoc&E and the cost ofdebt

Question < 12 of 1 =ta!t time7 0 70 7$2 AM . Total Ma!&s7 1Total 5o!tfolio !is& is a combination of7

=elect co!!ect o5tion7=ystematic !is& 5lus non-dive!sifiable !is&


18/263

Avoidable !is& 5lus dive!sifiable !is&=ystematic !is& 5lus unavoidable !is&=ystematic !is& 5lus dive!sifiable !is&

Question < 1$ of 1 =ta!t time7 0 70 7/ AM . Total Ma!&s7 1?hich of the follo9ing !efe!s to time value of money conce5t

=elect co!!ect o5tion7A !u5ee in one+s hand at 5!esent is 9o!th less than the !u5ee that one isgoing to !eceive tomo!!o9A !u5ee in one+s hand at 5!esent is 9o!th mo!e than the !u5ee that one isgoing to !eceive tomo!!o9A !u5ee in one+s hand at 5!esent is 9o!th same as the !u5ee that one is going

to !eceive tomo!!o9All of the given o5tions

Question < 1/ of 1 =ta!t time7 0 71071/ AM . Total Ma!&s7 13n 9hich of the follo9ing a55!oach you need to b!ing all the 5!o6ects to thesame length in time

=elect co!!ect o5tion7M3'' a55!oachGoing conce!n a55!oach,ommon life a55!oachHquivalent annual a55!oach

Question < 1 of 1 =ta!t time7 0 7107$0 AM . Total Ma!&s7 1?hich of the follo9ing costs 9ould be conside!ed a fiCed cost

=elect co!!ect o5tion7'a9 mate!ials4e5!eciation*ad-debt losses)!oduction labo!

Question < 1 of 1 =ta!t time7 0 71$71 AM . Total Ma!&s7 1The conventional measu!e of dis5e!sion is #


19/263

=elect co!!ect o5tion7A 5!obability dist!ibutionThe eC5ected !etu!n

The standa!d deviation,oefficient of va!iation

Question < 2 of 1 =ta!t time7 0 71$7$/ AM . Total Ma!&s7 1An a!bit!age o55o!tunity eCists if an investo! can const!uct a investment 5o!tfolio that 9ill yield a su!e 5!ofit#

=elect co!!ect o5tion7)ositive

@egativeNe!oAll of the above

Question < $ of 1 =ta!t time7 0 71$7 $ AM . Total Ma!&s7 13n efficient ma!&et the stoc& 5!ice de5ends u5on the !equi!ed !etu!n 9hichde5ends u5on #

=elect co!!ect o5tion7Ma!&et !is&Total !is&4ive!sified !is&@on- systematic !is&

Question < / of 1 =ta!t time7 0 71/70 AM . Total Ma!&s7 1?hy com5anies invest in 5!o6ects 9ith negative @)P

=elect co!!ect o5tion7*ecause the!e is hidden value in each 5!o6ect*ecause the!e may be chance of !a5id g!o9th*ecause they have invested a lotAll of the given o5tions

Question < of 1 =ta!t time7 0 71/72$ AM . Total Ma!&s7 1?hat does the la9 of conse!vation of value im5lies


20/263

=elect co!!ect o5tion7The miC of senio! and subo!dinated debt does not affect the value of thefi!m

The miC of conve!tible and non-conve!tible debt does not affect the valueof the fi!mThe miC of common stoc& and 5!efe!!ed stoc& does not affect the value ofthe fi!mAll of the given o5tions

Question < of 1 =ta!t time7 0 71/7 $ AM . Total Ma!&s7 1=tudy the time line and accom5anying -5e!iod cash-flo9 5atte!n belo9# 0 12 $ / Time line -------- -------- -------- -------- -------- -------- 's#10

's#10 's#10 's#10 's#10 ,ash flo9s U U A * The 5!esent value of the -5e!iodannuity sho9n above as of )oint A is the 5!esent value of a -5e!iod E 9he!eas the futu!e value of the same annuity as of)oint * is the futu!e value of a -5e!iod #

=elect co!!ect o5tion7%!dina!y annuityO o!dina!y annuity%!dina!y annuityO annuity dueAnnuity dueO annuity dueAnnuity dueO o!dina!y annuity

Question < > of 1 =ta!t time7 0 71 7 AM . Total Ma!&s7 1?hat is a legal ag!eementE also called the deed of t!ustE bet9een theco!5o!ation issuing bonds and the bondholde!s that establish the te!ms ofthe bond issue

=elect co!!ect o5tion73ndentu!e4ebentu!e*ond*ond t!ustee

Question < of 1 =ta!t time7 0 71 71 AM . Total Ma!&s7 1?hich of the follo9ing is the value of beta fo! the ma!&et 5o!tfolio


21/263

=elect co!!ect o5tion7

0#2-1#01#00#

Question < 10 of 1 =ta!t time7 0 71 70 AM . Total Ma!&s7 1?hich of the follo9ing is FAD=H about )e!5etuity

=elect co!!ect o5tion73t is a se!ies of cash flo9s,ash flo9s occu! fo! a s5ecific time 5e!iod3ts cash flo9s a!e identical@one of the given o5tions

Question < 11 of 1 =ta!t time7 0 71 7/ AM . Total Ma!&s7 15on 9hich of the follo9ing a fi!mBs deg!ee of o5e!ating leve!age 4%D.

de5ends 5!ima!ily

=elect co!!ect o5tion7=ales va!iabilityDevel of fiCed o5e!ating costs,loseness to its o5e!ating b!ea&-even 5oint4ebt-to-equity !atio

Question < 12 of 1 =ta!t time7 0 71 7 AM . Total Ma!&s7 1Acco!ding to timing diffe!ence 5!oblem a good 5!o6ect might suffe! f!om

3'' even though its @)P is #

=elect co!!ect o5tion7Sighe!O lo9e!


22/263

Do9e!O Do9e!Do9e!O highe!Sighe!O highe!

Question < 1$ of 1 =ta!t time7 0 71>7$/ AM . Total Ma!&s7 1?hich of the follo9ing !efe!s to the !is& associated 9ith inte!est !ateunce!tainty

=elect co!!ect o5tion74efault !is& 5!emium=ove!eign 'is& )!emiumMa!&et !is& 5!emiumMatu!ity !is& 5!emium

Question < 1/ of 1 =ta!t time7 0 71>7 0 AM . Total Ma!&s7 1?hich of the follo9ing fo!mulas !e5!esents a co!!ect calculation of thedeg!ee of o5e!ating leve!age

=elect co!!ect o5tion7Q - Q*H.8QH*3T. 8 H*3T - F,.

VQ )-P. F,W 8VQ )-P.WQ )-P. 8 VQ )-P. - F,W

Question < 1 of 1 =ta!t time7 0 71 70/ AM . Total Ma!&s7 1?hy ma!&ets and ma!&et !etu!ns fluctuate

=elect co!!ect o5tion7*ecause of 5olitical facto!s*ecause of social facto!s*ecause of socio-5olitical facto!s*ecause of mac!o systematic facto!s

Question < 1 of 1 =ta!t time7 017$>7/ )M . Total Ma!&s7 1?hich of the follo9ings a!e the 5!o5ositions of Modigliani and Mille!Bs


23/263

=elect co!!ect o5tion7The ma!&et value of a fi!mBs common stoc& is inde5endent of its ca5italst!uctu!e

The ma!&et value of a fi!mBs debt is inde5endent of its ca5ital st!uctu!eThe ma!&et value of any fi!m is inde5endent of its ca5ital st!uctu!e@one of the given o5tions

Question < 2 of 1 =ta!t time7 017$ 71 )M . Total Ma!&s7 1A ca5ital budgeting technique th!ough 9hich discount !ate equates the5!esent value of the futu!e net cash flo9s f!om an investment 5!o6ect 9iththe 5!o6ect+s initial cash outflo9 is &no9n as7

=elect co!!ect o5tion7)aybac& 5e!iod3nte!nal !ate of !etu!n@et 5!esent value)!ofitability indeC

Question < $ of 1 =ta!t time7 017/070> )M . Total Ma!&s7 1?hat should be the focal 5oint of financial management in a fi!m

=elect co!!ect o5tion7The numbe! and ty5es of 5!oducts o! se!vices 5!ovided by the fi!mThe minimization of the amount of taCes 5aid by the fi!mThe c!eation of value fo! sha!eholde!sThe dolla!s 5!ofits ea!ned by the fi!m

Question < / of 1 =ta!t time7 017/07/ )M . Total Ma!&s7 1?hich of the follo9ing is the !is& of investing funds in anothe! count!y


24/263

=elect co!!ect o5tion74efault !is& 5!emium=ove!eign 'is& )!emium

Ma!&et !is& 5!emiumMatu!ity !is& 5!emium

Question < of 1 =ta!t time7 017/171 )M . Total Ma!&s7 1?hich of the follo9ing is FAD=H about )e!5etuity

=elect co!!ect o5tion73t is a se!ies of cash flo9s

,ash flo9s occu! fo! a s5ecific time 5e!iod3ts cash flo9s a!e identical@one of the given o5tions

Question < of 1 =ta!t time7 017/17 1 )M . Total Ma!&s7 1Acco!ding to E the fi!mBs cost of equity inc!eases 9ithg!eate! debt financingE but the ?A,, !emains unchanged#

=elect co!!ect o5tion7MKM )!o5osition 3 9ith taCesMKM )!o5osition 3 9ithout taCesMKM )!o5osition 33 9ithout taCesMKM )!o5osition 33 9ith taCes

Question < of 1 =ta!t time7 017/27// )M . Total Ma!&s7 1?hich of the follo9ing value of the sha!es changes 9ith investo!+s5e!ce5tion about the com5any+s futu!e and su55ly and demand situation

=elect co!!ect o5tion7)a! valueMa!&et value


25/263

3nt!insic valueFace value

Question < > of 1 =ta!t time7 017/$71 )M . Total Ma!&s7 1

=elect co!!ect o5tion700#1-1

Question < of 1 =ta!t time7 017/$7/ )M . Total Ma!&s7 1?hich of the follo9ing is the cash !equi!ed du!ing a s5ecific 5e!iod to meetinte!est eC5enses and 5!inci5al 5ayments

=elect co!!ect o5tion74ebt ca5acity4ebt-se!vice bu!denAdequacy ca5acityFiCed-cha!ge bu!den

Question < 10 of 1 =ta!t time7 017//71 )M . Total Ma!&s7 1 is equal to common sha!eholde!sB equity8common sha!esoutstanding.#

=elect co!!ect o5tion7*oo& value 5e! sha!eDiquidation value 5e! sha!eMa!&et value 5e! sha!e@one of the above


26/263

Question < 11 of 1 =ta!t time7 017//7/ )M . Total Ma!&s7 1

=elect co!!ect o5tion74ive!sification=tanda!d deviationPa!iance,ova!iance

Question < 12 of 1 =ta!t time7 017/ 72 )M . Total Ma!&s7 1So9 =ha!eholde! 9ealth is !e5!esented in a fi!m=elect co!!ect o5tion7

The numbe! of 5eo5le em5loyed in the fi!mThe boo& value of the fi!mBs assets less the boo& value of its liabilitiesThe ma!&et 5!ice 5e! sha!e of the fi!mBs common stoc&The amount of sala!y 5aid to its em5loyees

Question < 1$ of 1 =ta!t time7 017/ 7 )M . Total Ma!&s7 1?hich of the follo9ing 9ould gene!ally have unlimited liability

=elect co!!ect o5tion7A limited 5a!tne! in a 5a!tne!shi5A sha!eholde! in a co!5o!ationThe o9ne! of a sole 5!o5!ieto!shi5A membe! in a limited liability com5any DD,.

Question < 1/ of 1 =ta!t time7 017/ 7$2 )M . Total Ma!&s7 1?hich of the follo9ing is an eCam5le of !est!uctu!ing the fi!m

=elect co!!ect o5tion74ividends a!e inc!eased f!om 's#1 to 's#2 5e! sha!e


27/263

A ne9 investment inc!eases the fi!mBs business !is&@e9 equity is issued and the 5!oceeds !e5ay debtA ne9 *oa!d of 4i!ecto!s is elected to the fi!m

Question < 1 of 1 =ta!t time7 017/ 72 )M . Total Ma!&s7 1An investment 5!o5osal should be 6udged in 9hethe! o! not it 5!ovides7

=elect co!!ect o5tion7A !etu!n equal to the !etu!n !equi!e by the investo!A !etu!n mo!e than !equi!ed by investo!A !etu!n less than !equi!ed by investo!

A !etu!n equal to o! mo!e than !equi!ed by investo!Quiz =ta!t Time7 0 72 )MTime Deft >>sec s.Question < 1 of 1 =ta!t time7 0 72 720 )M . Total Ma!&s7 1?hich statement is @%T t!ue !ega!ding the ma!&et 5o!tfolio=elect co!!ect o5tion73t includes all 5ublicly t!aded financial assets3t is the tangency 5oint bet9een the ca5ital ma!&et line and theindiffe!ence cu!veAll secu!ities in the ma!&et 5o!tfolio a!e held in 5!o5o!tion to thei! ma!&etvalues3t lies on the efficient f!ontie!Question < 2 of 1 =ta!t time7 0 7$07$> )M . Total Ma!&s7 1?hich of the follo9ing is ty5e a Tem5o!a!y Account=elect co!!ect o5tion7AssetDiability'ese!ves'evenueQuiz =ta!t Time7 0 72 )MTime Deft >sec s.Question < $ of 1 =ta!t time7 0 7$2700 )M . Total Ma!&s7 1


28/263

Fo! 9hich of the follo9ing costs is it gene!ally necessa!y to a55ly a taCad6ustment to a yieldmeasu!e=elect co!!ect o5tion7

,ost of debt,ost of 5!efe!!ed stoc&,ost of common equity,ost of !etained ea!ningsQuestion < / of 1 =ta!t time7 0 7$27 0 )M . Total Ma!&s7 1Total 5o!tfolio !is& is a combination of7=elect co!!ect o5tion7=ystematic !is& 5lus non-dive!sifiable !is&Avoidable !is& 5lus dive!sifiable !is&

=ystematic !is& 5lus unavoidable !is&=ystematic !is& 5lus dive!sifiable !is&Question < of 1 =ta!t time7 0 7$$7$2 )M . Total Ma!&s7 1?hat is the additional amount a bo!!o9e! must 5ay to lende! to com5ensatefo! assuming the !is& associated 9ith non-5ayment=elect co!!ect o5tion74efault !is& 5!emium=ove!eign 'is& )!emiumMa!&et !is& 5!emiumMatu!ity !is& 5!emiumQuestion < of 1 =ta!t time7 0 7$/70/ )M . Total Ma!&s7 1?hich of the follo9ing is the cash !equi!ed du!ing a s5ecific 5e!iod to meetinte!est eC5enses and 5!inci5al 5ayments=elect co!!ect o5tion74ebt ca5acity4ebt-se!vice bu!denAdequacy ca5acityFiCed-cha!ge bu!denQuestion < of 1 =ta!t time7 0 7$/7$ )M . Total Ma!&s7 1?hich of the follo9ing !efe!s to time value of money conce5t=elect co!!ect o5tion7A !u5ee in one+s hand at 5!esent is 9o!th less than the !u5ee that one isgoing to !eceive tomo!!o9A !u5ee in one+s hand at 5!esent is 9o!th mo!e than the !u5ee that one isgoing to !eceive tomo!!o9


29/263

A !u5ee in one+s hand at 5!esent is 9o!th same as the !u5ee that one is goingto !eceive tomo!!o9All of the given o5tions

Question < > of 1 =ta!t time7 0 7$ 71 )M . Total Ma!&s7 1?hich of the follo9ing statements is T' H !ega!ding )e!manent Accounts

=elect co!!ect o5tion7Accounts that a!e found on 3ncome =tatementAccounts that a!e found on =tatement of 'etained Ha!ningsAccounts that a!e found on *alance =heetAll of the given o5tions

Question < of 1 =ta!t time7 0 7$ 7 )M . Total Ma!&s7 13n 9hich of the follo9ing a55!oach you need to b!ing all the 5!o6ects to thesame length in time

=elect co!!ect o5tion7M3'' a55!oachGoing conce!n a55!oach,ommon life a55!oachHquivalent annual a55!oachQuestion < 10 of 1 =ta!t time7 0 7$ 7$1 )M . Total Ma!&s7 1?hat is the diffe!ence bet9een economic 5!ofit and accounting 5!ofit=elect co!!ect o5tion7Hconomic 5!ofit includes a cha!ge fo! all 5!ovide!s of ca5ital 9hileaccounting 5!ofit includes only a cha!ge fo! debtHconomic 5!ofit cove!s the 5!ofit ove! the life of the fi!mE 9hile accounting5!ofit only cove!s the most !ecent accounting 5e!iodAccounting 5!ofit is based on cu!!ent acce5ted accounting !ules 9hileeconomic 5!ofit is based on cash flo9sAll of the given o5tions a!e co!!ectQuestion < 11 of 1 =ta!t time7 0 7$ 71$ )M . Total Ma!&s7 1?hich of the follo9ing can not be the d!a9bac& of using 5aybac& 5e!iodtechnique of ca5ital budgeting=elect co!!ect o5tion73t does not account fo! time value of money3t neglects cash flo9s afte! the 5aybac& 5e!iod


30/263

3t does not use inte!est !ate 9hile ma&ing calculations3t is a t!ic&y and com5licated methodQuestion < 12 of 1 =ta!t time7 0 7$ 7/$ )M . Total Ma!&s7 1?hich of the follo9ing 9ould be conside!ed a cash-flo9 item f!om an

investing activity=elect co!!ect o5tion7,ash outflo9 to the gove!nment fo! taCes,ash outflo9 to sha!eholde!s as dividends,ash outflo9 to lende!s as inte!est,ash outflo9 to 5u!chase bonds issued by anothe! com5anyQuestion < 1$ of 1 =ta!t time7 0 7$>72/ )M . Total Ma!&s7 1?hat is diffe!ence bet9een sha!es and bonds=elect co!!ect o5tion7

*onds a!e !e5!esenting o9ne!shi5 9he!eas sha!es a!e not=ha!es a!e !e5!esenting o9ne!shi5 9he!eas bonds a!e not=ha!es and bonds both !e5!esent equity=ha!es and bond both !e5!esent liabilitiesQuestion < 1/ of 1 =ta!t time7 0 7$ 70 )M . Total Ma!&s7 1?hich of the follo9ing a!e &no9n as 4isc!etiona!y Financing=elect co!!ect o5tion7,u!!ent liabilities,u!!ent assetsFiCed assetsDong-te!m liabilitiesQuestion < 1 of 1 =ta!t time7 0 7$ 7 )M . Total Ma!&s7 1?hich of the follo9ing is simila! bet9een 'etu!n on investment and )aybac&5e!iod techniques of,a5ital budgeting=elect co!!ect o5tion73nvolvement of inte!est !ate 9hile ma&ing calculations4o not account fo! time value of moneyT!ic&y and com5licated methodsAll of the given o5tionsQuestion < 1 of 1 =ta!t time7 0 7/270 )M . Total Ma!&s7 13n 2 yea!s you a!e to !eceive 's#10E000# 3f the inte!est !ate 9e!e tosuddenly dec!easeE the5!esent value of that futu!e amount to you 9ould #=elect co!!ect o5tion7


31/263

Fall'ise'emain unchanged3ncom5lete info!mation

Question < 2 of 1 =ta!t time7 0 7/27/1 )M . Total Ma!&s7 1As inte!est !ates go u5E the 5!esent value of a st!eam of fiCed cash flo9s #=elect co!!ect o5tion7Goes do9nGoes u5=tays the same,an not be found f!om the given info!mationQuestion < $ of 1 =ta!t time7 0 7/$7$0 )M . Total Ma!&s7 1

All of the follo9ing a!e the financial statements used fo! the 5u!5ose of!e5o!ting and analysisHX,H)T7=elect co!!ect o5tion7*alance =heet3ncome =tatement,ash budget=tatement of 'etained Ha!ningsQuestion < / of 1 =ta!t time7 0 7//712 )M . Total Ma!&s7 1The value of the bond is @%T di!ectly tied to the value of 9hich of thefollo9ing assets=elect co!!ect o5tion7'eal assets of the businessDiquid assets of the businessFiCed assets of the businessDong te!m assets of the businessQuestion < of 1 =ta!t time7 0 7//7/ )M . Total Ma!&s7 1?hich of the follo9ing statistic measu!es the !etu!ns of t9o !is&y assetsthat move togethe!=elect co!!ect o5tion7,o!!elation=tanda!d deviation=qua!e !ootPa!ianceQuestion < of 1 =ta!t time7 0 7/ 7/$ )M . Total Ma!&s7 1


32/263

?hich of the follo9ing needs to be eCcluded 9hile 9e calculate theinc!emental cash flo9s=elect co!!ect o5tion74e5!eciation

=un& cost%55o!tunity cost@on-cash itemQuestion < of 1 =ta!t time7 0 7/ 71 )M . Total Ma!&s7 1?hat is the 5!esent value of 's#>E000 to be 5aid at the end of th!ee yea!sif inte!est !ate is 11I=elect co!!ect o5tion7's# E01's#/E> 2

's# E 2's#1E>/2Question < > of 1 =ta!t time7 0 7/ 700 )M . Total Ma!&s7 1?hat is the 5!esent value of 's# $E 00E000 to be 5aid at the end of 0 yea!sif the co!!ect !is& ad6usted inte!est !ate is 1>I=elect co!!ect o5tion7's#10 E000's#1E 00E000's#$ E000's# $ 0E000Question < of 1 =ta!t time7 0 7/ 7$ )M . Total Ma!&s7 1?hich of the follo9ing is a ca5ital budgeting technique that is @%Tconside!ed as discounted cash flo9 method=elect co!!ect o5tion7)aybac& 5e!iod3nte!nal !ate of !etu!n@et 5!esent value)!ofitability indeC

Question < 10 of 1 =ta!t time7 0 7/>710 )M . Total Ma!&s7 1All of the follo9ing a!e the !easons fo! nce!tain @)P calculations HX,H)T7=elect co!!ect o5tion7

Hstimated discount !ate does not change 9ith the ma!&etsHstimated Dife of 5!o6ect is doubtful


33/263

Annual afte!-taC cash flo9s a!e difficult to estimateTiming of cash flo9s is not eCactly 5!edictable

Question < 11 of 1 =ta!t time7 0 7/ 7$2 )M . Total Ma!&s7 1

?hich of the follo9ing fo!mulas !e5!esents a co!!ect calculation of thedeg!ee of o5e!ating leve!age=elect co!!ect o5tion7

Q - Q*H.8QH*3T. 8 H*3T - F,.

VQ )-P. F,W 8VQ )-P.WQ )-P. 8 VQ )-P. - F,WQuestion < 12 of 1 =ta!t time7 0 7 0702 )M . Total Ma!&s7 1So9 can a com5any im5!ove lo9e!. its debt-to-total asset !atio

=elect co!!ect o5tion7*y bo!!o9ing mo!e*y shifting sho!t-te!m to long-te!m debt*y shifting long-te!m to sho!t-te!m debt*y selling common stoc&Question < 1$ of 1 =ta!t time7 0 7 072 )M . Total Ma!&s7 1?hich of the follo9ing 9ould be conside!ed a cash-flo9 item f!om an

investing activity=elect co!!ect o5tion7,ash outflo9 to the gove!nment fo! taCes,ash outflo9 to sha!eholde!s as dividends,ash outflo9 to lende!s as inte!est,ash outflo9 to 5u!chase bonds issued by anothe! com5anyQuestion < 1/ of 1 =ta!t time7 0 7 172$ )M . Total Ma!&s7 1,onside! t9o bondsE A and *# *oth bonds 5!esently a!e selling at thei! 5a!value of 's# 1E000#Hach 5ays inte!est of 's# 120 annually# *ond A 9ill matu!e in yea!s 9hilebond * 9ill matu!e in

yea!s# 3f the yields to matu!ity on the t9o bonds change f!om 12I to 10IE #=elect co!!ect o5tion7*oth bonds 9ill inc!ease in valueE but bond A 9ill inc!ease mo!e than bond **oth bonds 9ill inc!ease in valueE but bond * 9ill inc!ease mo!e than bond A*oth bonds 9ill dec!ease in valueE but bond A 9ill dec!ease mo!e than bond **oth bonds 9ill dec!ease in valueE but bond * 9ill dec!ease mo!e than bond A


34/263

Question < 1 of 1 =ta!t time7 0 7 270/ )M . Total Ma!&s7 1,oefficient of va!iation is @%T the measu!e of #=elect co!!ect o5tion7'is&

)!obability'elative dis5e!sion'is& 5e! unit of eC5ected !etu!n

Question < 1 of 1 =ta!t time7 0 7 7$$ )M . Total Ma!&s7 1?hich of the follo9ing !is& can be dive!sified a9ay=elect co!!ect o5tion7=ystematic !is&*eta

Fi!m s5ecific !is&Ma!&et !is&Question < 2 of 1 =ta!t time7 0 7 >71 )M . Total Ma!&s7 1(ou a!e conside!ing t9o investment 5!o5osalsE 5!o6ect A and 5!o6ect *# *BseC5ected net 5!esent value is 's# 1E000 g!eate! than that fo! A and ABsdis5e!sion of net 5!esent value is less than that fo! *# %n the basis of !is&and !etu!nE 9hat 9ould be you! conclusion=elect co!!ect o5tion7)!o6ect A dominates 5!o6ect *)!o6ect * dominates 5!o6ect A@eithe! 5!o6ect dominates the othe! in te!ms of !is& and !etu!n3ncom5lete info!mationQuestion < $ of 1 =ta!t time7 0 7 70/ )M . Total Ma!&s7 1So9 can a com5any im5!ove lo9e!. its debt-to-total asset !atio=elect co!!ect o5tion7*y bo!!o9ing mo!e*y shifting sho!t-te!m to long-te!m debt*y shifting long-te!m to sho!t-te!m debt*y selling common stoc&Question < / of 1 =ta!t time7 0 7 7/0 )M . Total Ma!&s7 1The cu!!ent yield on a bond is equal to #=elect co!!ect o5tion7Annual inte!est divided by the cu!!ent ma!&et 5!iceThe yield to matu!ityAnnual inte!est divided by the 5a! value


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The inte!nal !ate of !etu!nQuestion < of 1 =ta!t time7 0 7007$2 )M . Total Ma!&s7 1?hich of the follo9ing is a ca5ital budgeting technique that is @%Tconside!ed as discounted

cash flo9 method=elect co!!ect o5tion7)aybac& 5e!iod3nte!nal !ate of !etu!n@et 5!esent value)!ofitability indeCQuestion < of 1 =ta!t time7 0 70170 )M . Total Ma!&s7 1The the coefficient of va!iation the !elative !is& of theinvestment#

=elect co!!ect o5tion7Da!ge!O Da!ge!Da!ge!O =malle!=malle!O Da!ge!=malle!O =malle!Question < of 1 =ta!t time7 0 70270 )M . Total Ma!&s7 1?hich of the follo9ing is a ma6o! disadvantage of the co!5o!ate fo!m ofo!ganization=elect co!!ect o5tion74ouble taCation of dividends3nability of the fi!m to !aise la!ge sums of additional ca5italDimited liability of sha!eholde!sDimited life of the co!5o!ate fo!mQuestion < > of 1 =ta!t time7 0 7027 $ )M . Total Ma!&s7 1?hich of the follo9ing includes the 5lanningE di!ectingE monito!ingEo!ganizingE and cont!olling of the moneta!y !esou!ces of an o!ganization=elect co!!ect o5tion7Financial accountingFinancial managementFinancial enginee!ingFinancial budgetingQuestion < of 1 =ta!t time7 0 70$72/ )M . Total Ma!&s7 1?hich of the follo9ing 5o!tfolio statistics statements is co!!ect=elect co!!ect o5tion7


36/263

A 5o!tfolioBs eC5ected !etu!n is a sim5le 9eighted ave!age of eC5ected!etu!ns of the individual secu!ities com5!ising the 5o!tfolio#A 5o!tfolioBs standa!d deviation of !etu!n is a sim5le 9eighted ave!age ofindividual secu!ity !etu!n standa!d deviations#

The squa!e !oot of a 5o!tfolioBs standa!d deviation of !etu!n equals itsva!iance#The squa!e !oot of a 5o!tfolioBs standa!d deviation of !etu!n equals itscoefficient of va!iation#Question < 10 of 1 =ta!t time7 0 70/710 )M . Total Ma!&s7 1?hat is the 5!esent value of 's#1E000 to be 5aid at the end of yea!s if theco!!ect !is& ad6usted inte!est !ate is >I=elect co!!ect o5tion7's# 1/

's#1E/ 2's#$22#'s#/01# >Question < 11 of 1 =ta!t time7 0 70 71$ )M . Total Ma!&s7 13n 2 yea!s you a!e to !eceive 's#10E000# 3f the inte!est !ate 9e!e tosuddenly dec!easeE the 5!esent value of that futu!e amount to you 9ould #=elect co!!ect o5tion7Fall'ise'emain unchanged3ncom5lete info!mationQuestion < 12 of 1 =ta!t time7 0 70 7/ )M . Total Ma!&s7 13f a fi!m has a 4%D of at Q unitsE 9hat 9ould be the effect on sales andH*3T=elect co!!ect o5tion73f sales !ise by IE H*3T 9ill !ise by I3f sales !ise by 1IE H*3T 9ill !ise by 1I3f sales !ise by IE H*3T 9ill fall by 2 I3f sales !ise by 1IE H*3T 9ill !ise by IQuestion < 1$ of 1 =ta!t time7 0 70 722 )M . Total Ma!&s7 1?hen bonds a!e issuedE unde! 9hich of the follo9ing catego!y the value ofthe bond a55ea!s=elect co!!ect o5tion7Hquity


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FiCed assets=ho!t te!m loanDong te!m loanQuestion < 1/ of 1 =ta!t time7 0 70 7$1 )M . Total Ma!&s7 1

?hich of the follo9ing could be defined as the ca5ital st!uctu!e of the,om5any=elect co!!ect o5tion7The fi!mBs miC of diffe!ent secu!itiesThe fi!mBs debt-equity !atioThe ma!&et im5e!fection that the fi!mBs manage! can eC5loitAll of the aboveQuestion < 1 of 1 =ta!t time7 0 70>70 )M . Total Ma!&s7 1 means eC5anding the numbe! of investments 9hich cove! diffe!ent

&inds of stoc&s#=elect co!!ect o5tion74ive!sification=tanda!d deviationPa!iance,ova!ianceQuestion < 1 of 1 =ta!t time7 0 70 711 )M . Total Ma!&s7 1?hich of the follo9ing !is& can be dive!sified a9ay=elect co!!ect o5tion7=ystematic !is&*etaFi!m s5ecific !is&Ma!&et !is&Question < 2 of 1 =ta!t time7 0 7107$ )M . Total Ma!&s7 1,om5anies and individuals !unning diffe!ent ty5es of businesses have toma&e the choices of theasset acco!ding to 9hich of the follo9ing=elect co!!ect o5tion7Dife s5an of the 5!o6ect,ost of the ca5ital'etu!n on asset@one of the given o5tionsQuestion < $ of 1 =ta!t time7 0 71172 )M . Total Ma!&s7 1,onside! t9o bondsE A and *# *oth bonds 5!esently a!e selling at thei! 5a!value of 's# 1E000#


38/263

Hach 5ays inte!est of 's# 120 annually# *ond A 9ill matu!e in yea!s 9hilebond * 9ill matu!e in yea!s# 3f the yields to matu!ity on the t9o bondschange f!om 12I to 10IE #=elect co!!ect o5tion7

*oth bonds 9ill inc!ease in valueE but bond A 9ill inc!ease mo!e than bond **oth bonds 9ill inc!ease in valueE but bond * 9ill inc!ease mo!e than bond A*oth bonds 9ill dec!ease in valueE but bond A 9ill dec!ease mo!e than bond **oth bonds 9ill dec!ease in valueE but bond * 9ill dec!ease mo!e than bond AQuestion < / of 1 =ta!t time7 0 71271 )M . Total Ma!&s7 13f the 5!obability is 9!itten on (-aCis and the !ate of !etu!n is mentioned onthe X-aCisE ?hich &indof !elationshi5 it sho9s 9hen the!e is highe! the standa!d deviation thehighe! the !is

=elect co!!ect o5tion73ndi!ect !elationshi53nve!se !elationshi54i!ect !elationshi5@o !elationshi5Question < of 1 =ta!t time7 0 7127/ )M . Total Ma!&s7 1?hich of the follo9ing fo!mula !elates beta of the stoc& to the standa!ddeviation=elect co!!ect o5tion7,ova!iance of stoc& 9ith ma!&et Y va!iance of the ma!&et,ova!iance of stoc& 9ith ma!&et 8 va!iance of the ma!&etPa!iance of the ma!&et 8 ,ova!iance of stoc& 9ith ma!&et=lo5e of the !eg!ession lineQuestion < of 1 =ta!t time7 0 71$7 / )M . Total Ma!&s7 1At the te!mination of 5!o6ectE 9hich of the follo9ing needs to be conside!ed!elating to 5!o6ect assets=elect co!!ect o5tion7=alvage value*oo& value3nt!insic valueFai! valueQuestion < of 1 =ta!t time7 0 71/7 0 )M . Total Ma!&s7 1The the coefficient of va!iation the !elative !is& of theinvestment#=elect co!!ect o5tion7


39/263

Da!ge!O Da!ge!Da!ge!O =malle!=malle!O Da!ge!=malle!O =malle!

Question < > of 1 =ta!t time7 0 71 71 )M . Total Ma!&s7 1?ho o! 9hat is a 5e!son o! institution designated by a bond issue! as theofficial !e5!esentative of the bondholde!s=elect co!!ect o5tion73ndentu!e4ebentu!e*ond*ond t!usteeQuestion < of 1 =ta!t time7 0 71 7 2 )M . Total Ma!&s7 1

5on 9hich of the follo9ing a fi!mBs deg!ee of o5e!ating leve!age 4%D.de5ends 5!ima!ily=elect co!!ect o5tion7=ales va!iabilityDevel of fiCed o5e!ating costs,loseness to its o5e!ating b!ea&-even 5oint4ebt-to-equity !atioQuestion < 10 of 1 =ta!t time7 0 71 721 )M . Total Ma!&s7 1?hich of the follo9ing equations is the co!!ect one=elect co!!ect o5tion7@et inc!emental afte! taC cash flo9s L net o5e!ating income de5!eciation

TaC savings f!om de5!eciation net 9o!&ing ca5ital othe! cash flo9@et inc!emental afte! taC cash flo9s L net o5e!ating income - de5!eciation

TaC savings f!om de5!eciation net 9o!&ing ca5ital othe! cash flo9@et inc!emental afte! taC cash flo9s L net o5e!ating income de5!eciation-TaC savings f!om de5!eciation - net 9o!&ing ca5ital othe! cash flo9@et inc!emental afte! taC cash flo9s L net o5e!ating income de5!eciation

TaC savings f!om de5!eciation net 9o!&ing ca5ital - othe! cash flo9Question < 11 of 1 =ta!t time7 0 71 7/ )M . Total Ma!&s7 1?hich of the follo9ing is @%T an eCam5le of a financial inte!media!y=elect co!!ect o5tion7?isconsin =KDE a savings and loan association=t!ong ,a5ital A55!eciationE a mutual fundMic!osoft ,o!5o!ationE a soft9a!e fi!m,ollege ,!editE a c!edit union


40/263

Question < 12 of 1 =ta!t time7 0 71>7 2 )M . Total Ma!&s7 1?hat should be used to calculate the 5!o5o!tional amount of equity financingem5loyed by a fi!m=elect co!!ect o5tion7

The common stoc& equity account on the fi!mBs balance sheetThe sum of common stoc& and 5!efe!!ed stoc& on the balance sheetThe boo& value of the fi!mThe cu!!ent ma!&et 5!ice 5e! sha!e of common stoc& times the numbe! ofsha!es %utstandingQuestion < 1$ of 1 =ta!t time7 0 71 7// )M . Total Ma!&s7 1?hen 3nvesto!s 9ant high 5lo9bac& !atios=elect co!!ect o5tion7?heneve! '%H Z &

?heneve! & Z '%H%nly 9hen they a!e in lo9 taC b!ac&ets?heneve! ban& inte!est !ates a!e highQuestion < 1/ of 1 =ta!t time7 0 72071 )M . Total Ma!&s7 1?hich of the follo9ing is8a!e the com5onent s. of 9o!&ing ca5italmanagement=elect co!!ect o5tion7,u!!ent assetsFiCed assetsFiCed assets and long-te!m liabilities,u!!ent assets and cu!!ent liabilitiesQuestion < 1 of 1 =ta!t time7 0 7207/$ )M . Total Ma!&s7 1?hich of the follo9ing !efe!s to the cost of ta&ing u5 one o5tion 9hilesac!ificing the othe!=elect co!!ect o5tion7%55o!tunity cost%5e!ating cost=un& costFloatation cost

Question < 1 of 1 =ta!t time7 017 7 $ )M . Total Ma!&s7 1?hy ma!&ets and ma!&et !etu!ns fluctuate=elect co!!ect o5tion7*ecause of 5olitical facto!s*ecause of social facto!s


41/263

*ecause of socio-5olitical facto!s*ecause of mac!o systematic facto!s

Question < 2 of 1 =ta!t time7 017 >7/2 )M . Total Ma!&s7 1

The cu!!ent yield on a bond is equal to #=elect co!!ect o5tion7Annual inte!est divided by the cu!!ent ma!&et 5!iceThe yield to matu!ityAnnual inte!est divided by the 5a! valueThe inte!nal !ate of !etu!n17Question < $ of 1 =ta!t time7 017 7$2 )M . Total Ma!&s7 1?hich of the follo9ing costs 9ould be conside!ed a fiCed cost

=elect co!!ect o5tion7'a9 mate!ials4e5!eciation*ad-debt losses)!oduction labo!

Question < / of 1 =ta!t time7 0270070 )M . Total Ma!&s7 1?hich g!ou5 of !atios sho9s the eCtent to 9hich the fi!m is financed 9ithdebt=elect co!!ect o5tion7Diquidity !atios4ebt !atios,ove!age !atios)!ofitability !atios Question < of 1 =ta!t time7 027007$ )M . Total Ma!&s7 1?hich of the follo9ing is the main ob6ective of [Hconomics+=elect co!!ect o5tion7)!ofit maCimizationMaCimization of sha!eholde!s 9ealth,ollection of accu!ateE systematicE and timely financial dataAll of the given o5tions

Question < of 1 =ta!t time7 027007 > )M . Total Ma!&s7 1?hich of the follo9ing is T' H about 3'' 3nte!nal 'ate of 'etu!n.


42/263

=elect co!!ect o5tion73t changes fo! each and eve!y yea! ove! the life of the 5!o6ect3t !emains same fo! each and eve!y yea! ove! the life of the 5!o6ect3t inc!eases ove! the life of the 5!o6ect

3t dec!eases ove! the life of the 5!o6ect

Question < of 1 =ta!t time7 0270270 )M . Total Ma!&s7 1?hich of the follo9ing is sim5ly the 9eighted ave!age of the 5ossible!etu!nsE 9ith the 9eights being the 5!obabilities of occu!!ence=elect co!!ect o5tion7)!obability dist!ibutionHC5ected !etu!n

=tanda!d deviation,oefficient of va!iation

Question < > of 1 =ta!t time7 027027$2 )M . Total Ma!&s7 1?hich of the follo9ing !efe!s to b!inging the futu!e cash flo9 to the5!esent time=elect co!!ect o5tion7@et 5!esent value4iscounting%55o!tunity cost3nte!nal !ate of !etu!n

Question < of 1 =ta!t time7 0270$701 )M . Total Ma!&s7 1,oefficient of va!iation is @%T the measu!e of #=elect co!!ect o5tion7'is&)!obability'elative dis5e!sion'is& 5e! unit of eC5ected !etu!n

Question < 10 of 1 =ta!t time7 0270$7$ )M . Total Ma!&s7 1?hen 3nvesto!s 9ant high 5lo9bac& !atios=elect co!!ect o5tion7?heneve! '%H Z &?heneve! & Z '%H


43/263

%nly 9hen they a!e in lo9 taC b!ac&ets?heneve! ban& inte!est !ates a!e high

Question < 11 of 1 =ta!t time7 0270$7 > )M . Total Ma!&s7 1

?ho o! 9hat is a 5e!son o! institution designated by a bond issue! as theofficial !e5!esentative of the bondholde!s=elect co!!ect o5tion73ndentu!e4ebentu!e*ond*ond t!ustee

Question < 12 of 1 =ta!t time7 0270/7$1 )M . Total Ma!&s7 1

?hich of the follo9ing sho9s ADD 5ossible 'is& J'etu!n combinations fo! Allcombinations of the stoc&s in the 5o!tfolio- 9hethe! efficient o! not#=elect co!!ect o5tion7)a!achute g!a5h,a5ital ma!&et line=ecu!ity ma!&et lineAll of the given o5tions

Question < 1$ of 1 =ta!t time7 0270 702 )M . Total Ma!&s7 1?hy 9e need ,a5ital !ationing =elect co!!ect o5tion7*ecauseE the!e a!e not enough 5ositive @)P 5!o6ects*ecauseE com5anies do not al9ays have access to all of the funds they couldma&e use of*ecauseE manage!s find it difficult to decide ho9 to fund 5!o6ects*ecauseE ban&s !equi!e ve!y high !etu!ns on 5!o6ects

Question < 1/ of 1 =ta!t time7 0270 72 )M . Total Ma!&s7 1?hich of the follo9ing is @%T the ste5 of )e!centage of sales to be used inFinancial Fo!ecasting=elect co!!ect o5tion7Hstimate yea!-by-yea! =ales 'evenue and HC5ensesHstimate Devels of 3nvestment @eeds !equi!ed to Meet Hstimated =alesHstimate the Financing @eedsHstimate the !etained ea!nings


44/263

Question < 1 of 1 =ta!t time7 0270 70 )M . Total Ma!&s7 1(ou a!e conside!ing t9o investment 5!o5osalsE 5!o6ect A and 5!o6ect *# *BseC5ected net 5!esent value is 's# 1E000 g!eate! than that fo! A and ABs

dis5e!sion of net 5!esent value is less than that fo! *# %n the basis of !is&and !etu!nE 9hat 9ould be you! conclusion=elect co!!ect o5tion7)!o6ect A dominates 5!o6ect *)!o6ect * dominates 5!o6ect A@eithe! 5!o6ect dominates the othe! in te!ms of !is& and !etu!n3ncom5lete info!mation

Question < 1 of 1 =ta!t time7 027$ 71 )M . Total Ma!&s7 1

?hich ty5e of !es5onsibilities a!e 5!ima!ily assigned to ,ont!olle! andT!easu!e! !es5ectively=elect co!!ect o5tion7%5e!ationalO financial managementFinancial managementO accountingAccountingO financial managementFinancial managementO o5e!ations

Question < 2 of 1 =ta!t time7 027/0700 )M . Total Ma!&s7 1?hich of the follo9ing should be included 9hile calculating the cash flo9sassociated 9ith a 5!o6ect=elect co!!ect o5tion7,ash flo9s at the time of investment,ash flo9s du!ing the life of 5!o6ect,ash flo9s at the te!mination dateAll of the given o5tions Question < $ of 1 =ta!t time7 027/07 2 )M . Total Ma!&s7 14iscounted cash flo9 methods 5!ovide a mo!e ob6ective basis fo! evaluatingand selecting an investment 5!o6ect# These methods ta&e into account7=elect co!!ect o5tion7Magnitude of eC5ected cash flo9sTiming of eC5ected cash flo9s


45/263

*oth timing and magnitude of cash flo9s@one of the given o5tions

Question < / of 1 =ta!t time7 027/17$0 )M . Total Ma!&s7 1

?hich of the follo9ing is the maCimum amount of debt and othe! fiCed-cha!ge financing. that a fi!m can adequately se!vice=elect co!!ect o5tion74ebt ca5acity4ebt-se!vice bu!denAdequacy ca5acityFiCed-cha!ge bu!den Question < of 1 =ta!t time7 027/17 > )M . Total Ma!&s7 1

So9 can a com5any im5!ove lo9e!. its debt-to-total asset !atio=elect co!!ect o5tion7*y bo!!o9ing mo!e*y shifting sho!t-te!m to long-te!m debt*y shifting long-te!m to sho!t-te!m debt*y selling common stoc& Question < of 1 =ta!t time7 027/27/0 )M . Total Ma!&s7 1?hy 9e need ,a5ital !ationing =elect co!!ect o5tion7*ecauseE the!e a!e not enough 5ositive @)P 5!o6ects*ecauseE com5anies do not al9ays have access to all of the funds they couldma&e use of*ecauseE manage!s find it difficult to decide ho9 to fund 5!o6ects*ecauseE ban&s !equi!e ve!y high !etu!ns on 5!o6ects

Question < of 1 =ta!t time7 027/$70/ )M . Total Ma!&s7 1The 9eighted ave!age of 5ossible !etu!nsE 9ith the 9eights being the5!obabilities of occu!!ence is !efe!!ed to as #=elect co!!ect o5tion7)!obability dist!ibutionHC5ected !etu!n=tanda!d deviation,oefficient of va!iation


46/263

Question < > of 1 =ta!t time7 027/$7/0 )M . Total Ma!&s7 15on 9hich of the follo9ing a fi!mBs deg!ee of o5e!ating leve!age 4%D.

de5ends 5!ima!ily=elect co!!ect o5tion7

=ales va!iabilityDevel of fiCed o5e!ating costs,loseness to its o5e!ating b!ea&-even 5oint4ebt-to-equity !atio

Question < of 1 =ta!t time7 027//71/ )M . Total Ma!&s7 1?hy common stoc& of a com5any must 5!ovide a highe! eC5ected !etu!nthan the debt of the same com5any=elect co!!ect o5tion7

The!e is less demand fo! stoc& than fo! bondsThe!e is g!eate! demand fo! stoc& than fo! bondsThe!e is mo!e systematic !is& involved fo! the common stoc&The!e is a ma!&et 5!emium !equi!ed fo! bonds

Question < 10 of 1 =ta!t time7 027//7/1 )M . Total Ma!&s7 1Fo! ,om5any AE 5lo9 bac& !atio is $0I# ?hat 9ill be its )ay-out !atio=elect co!!ect o5tion7$#$$I$0I$1I

0I

Question < 11 of 1 =ta!t time7 027/ 70 )M . Total Ma!&s7 1?hich of the follo9ing is FAD=H about )e!5etuity=elect co!!ect o5tion73t is a se!ies of cash flo9s,ash flo9s occu! fo! a s5ecific time 5e!iod3ts cash flo9s a!e identical@one of the given o5tions

Question < 12 of 1 =ta!t time7 027/ 72 )M . Total Ma!&s7 1?hat is the 5!esent value of 's#1E000 to be 5aid at the end of yea!s if theco!!ect !is& ad6usted inte!est !ate is >I=elect co!!ect o5tion7


47/263

's# 1/'s#1E/ 2's#$22#'s#/01# >

Question < 1$ of 1 =ta!t time7 027/ 7 / )M . Total Ma!&s7 1An investment 5!o5osal should be 6udged in 9hethe! o! not it 5!ovides7=elect co!!ect o5tion7A !etu!n equal to the !etu!n !equi!e by the investo!A !etu!n mo!e than !equi!ed by investo!A !etu!n less than !equi!ed by investo!A !etu!n equal to o! mo!e than !equi!ed by investo!

Question < 1/ of 1 =ta!t time7 027/ 7$> )M . Total Ma!&s7 1Ma!&et !is& is measu!ed in te!ms of the of the ma!&et 5o!tfolioo! indeC#=elect co!!ect o5tion7Pa!iance,ova!iance=tanda!d deviation,o!!elation coefficient

Question < 1 of 1 =ta!t time7 027/ 71 )M . Total Ma!&s7 1=tudy the time line and accom5anying -5e!iod cash-flo9 5atte!n belo9# 0 12 $ / Time line -------- -------- -------- -------- -------- -------- 's#10's#10 's#10 's#10 's#10 ,ash flo9s U U A * The 5!esent value of the -5e!iodannuity sho9n above as of )oint A is the 5!esent value of a -5e!iod E 9he!eas the futu!e value of the same annuity as of)oint * is the futu!e value of a -5e!iod #=elect co!!ect o5tion7%!dina!y annuityO o!dina!y annuity%!dina!y annuityO annuity dueAnnuity dueO annuity dueAnnuity dueO o!dina!y annuity

Question < 1 of 1 =ta!t time7 027/>7/0 )M . Total Ma!&s7 1The value of the bond is @%T di!ectly tied to the value of 9hich of thefollo9ing assets


48/263

=elect co!!ect o5tion7'eal assets of the businessDiquid assets of the businessFiCed assets of the business

Dong te!m assets of the business

Question < 2 of 1 =ta!t time7 027/ 712 )M . Total Ma!&s7 1?hich of the follo9ing is not a !ecognized a55!oach fo! dete!mining thecost of equity=elect co!!ect o5tion74ividend discount model a55!oach*efo!e-taC cost of 5!efe!!ed stoc& 5lus !is& 5!emium a55!oach,a5ital-asset 5!icing model a55!oach

*efo!e-taC cost of debt 5lus !is& 5!emium a55!oach Question < $ of 1 =ta!t time7 027/ 7/1 )M . Total Ma!&s7 1?hat is diffe!ence bet9een sha!es and bonds=elect co!!ect o5tion7*onds a!e !e5!esenting o9ne!shi5 9he!eas sha!es a!e not=ha!es a!e !e5!esenting o9ne!shi5 9he!eas bonds a!e not=ha!es and bonds both !e5!esent equity=ha!es and bond both !e5!esent liabilities

Question < / of 1 =ta!t time7 027 070 )M . Total Ma!&s7 1The ob6ective of financial management is to maCimize 9ealth#=elect co!!ect o5tion7=ta&eholde!s=ha!eholde!s*ondholde!s4i!ecto!s

Question < of 1 =ta!t time7 027 07/> )M . Total Ma!&s7 1So9 can a com5any im5!ove lo9e!. its debt-to-total asset !atio=elect co!!ect o5tion7*y bo!!o9ing mo!e*y shifting sho!t-te!m to long-te!m debt*y shifting long-te!m to sho!t-te!m debt*y selling common stoc&


49/263

Question < of 1 =ta!t time7 027 171/ )M . Total Ma!&s7 1?hich of the follo9ing is @%T the ste5 of )e!centage of sales to be used inFinancial Fo!ecasting

=elect co!!ect o5tion7Hstimate yea!-by-yea! =ales 'evenue and HC5ensesHstimate Devels of 3nvestment @eeds !equi!ed to Meet Hstimated =alesHstimate the Financing @eedsHstimate the !etained ea!nings

Question < of 1 =ta!t time7 027 17$> )M . Total Ma!&s7 1Acco!ding to the ,a5ital Asset )!icing Model ,A)M.E a 9ell-dive!sified5o!tfolioBs !ate of !etu!n is a function of 9hich of the follo9ing7

=elect co!!ect o5tion7nique !is&'einvestment !is&Ma!&et !is&

nsystematic !is&

Question < > of 1 =ta!t time7 027 2712 )M . Total Ma!&s7 1?hich of the follo9ing !is& can be dive!sified a9ay=elect co!!ect o5tion7=ystematic !is&*etaFi!m s5ecific !is&Ma!&et !is& Question < of 1 =ta!t time7 027 27/$ )M . Total Ma!&s7 1The statement of cash flo9s !e5o!ts a fi!mBs cash flo9s seg!egated into9hich of the follo9ing catego!ical o!de!=elect co!!ect o5tion7%5e!atingE investingE and financing3nvestingE o5e!atingE and financingFinancingE o5e!ating and investingFinancingE investingE and o5e!ating

Question < 10 of 1 =ta!t time7 027 $71$ )M . Total Ma!&s7 1?hat should be the focal 5oint of financial management in a fi!m


50/263

=elect co!!ect o5tion7The numbe! and ty5es of 5!oducts o! se!vices 5!ovided by the fi!mThe minimization of the amount of taCes 5aid by the fi!mThe c!eation of value fo! sha!eholde!s

The dolla!s 5!ofits ea!ned by the fi!m

Question < 11 of 1 =ta!t time7 027 $7$> )M . Total Ma!&s7 1?hat is a dividend clientele effect assumes=elect co!!ect o5tion73nvesto!s 5!efe! highe! !athe! than lo9e! dividends=ha!eholde!s a!e indiffe!ent !ega!ding dividends3nvesto!s have s5ecific dividend 5!efe!ences3nvesto!s a!e ma&ing homemade dividends

Question < 12 of 1 =ta!t time7 027 /7// )M . Total Ma!&s7 1?hich of the follo9ing is @%T t!ue !ega!ding an o!dina!y annuity=elect co!!ect o5tion73t is a se!ies of equal cash flo9s,ash flo9s occu! fo! a s5ecific time 5e!iod)ayments a!e made at the sta!t of each 5e!iod3t is also &no9n as defe!!ed annuity

Question < 1$ of 1 =ta!t time7 027 71 )M . Total Ma!&s7 1?hen the bond a55!oaches its matu!ityE the ma!&et value of the bonda55!oaches to 9hich of the follo9ing=elect co!!ect o5tion73nt!insic value*oo& value)a! valueSisto!ic cost Question < 1/ of 1 =ta!t time7 027 7/> )M . Total Ma!&s7 13f !is& and !etu!n combination of any stoc& is above the =MDE 9hat does itmean=elect co!!ect o5tion73t is offe!ing lo9e! !ate of !etu!n as com5a!ed to the efficient stoc&3t is offe!ing highe! !ate of !etu!n as com5a!ed to the efficient stoc&


51/263

3ts !ate of !etu!n is ze!o as com5a!ed to the efficient stoc&3t is offe!ing !ate of !etu!n equal to the efficient stoc&

Question < 1 of 1 =ta!t time7 027 72 )M . Total Ma!&s7 1

,oefficient of va!iation is @%T the measu!e of #=elect co!!ect o5tion7'is&)!obability'elative dis5e!sion'is& 5e! unit of eC5ected !etu!n Quiz =ta!t Time7 0$702 )M Time Deft >sec s.

Question < 1 of 1 =ta!t time7 0$70270/ )M . Total Ma!&s7 15on 9hich of the follo9ing a fi!mBs deg!ee of o5e!ating leve!age 4%D.


=ales va!iabilityDevel of fiCed o5e!ating costs,loseness to its o5e!ating b!ea&-even 5oint 4ebt-to-equity !atio

Question < 2 of 1 =ta!t time7 0$7027 0 )M . Total Ma!&s7 1The !is& that cove!s events li&e uneC5ected changes in the economy !efe!sto7=elect co!!ect o5tion7

=ystematic !is& nsystematic !is&

Total !is&All of the above

Question < $ of 1 =ta!t time7 0$70$7$1 )M . Total Ma!&s7 1?hich of the follo9ing is the main ob6ective of [Financial Accounting+


52/263


)!ofit maCimizationMaCimization of sha!eholde!s 9ealth

To collect accu!ateE systematicE and timely financial data All of the given o5tions

Question < / of 1 =ta!t time7 0$70/71$ )M . Total Ma!&s7 15on 9hich of the follo9ing a fi!mBs deg!ee of o5e!ating leve!age 4%D.


=ales va!iabilityDevel of fiCed o5e!ating costs,loseness to its o5e!ating b!ea&-even 5oint 4ebt-to-equity !atio

Question < of 1 =ta!t time7 0$70/7 )M . Total Ma!&s7 1?hich of the follo9ing is the maCimum amount of debt and othe! fiCed-cha!ge financing. that a fi!m can adequately se!vice=elect co!!ect o5tion7

4ebt ca5acity 4ebt-se!vice bu!denAdequacy ca5acityFiCed-cha!ge bu!den

Question < of 1 =ta!t time7 0$70 722 )M . Total Ma!&s7 1?hat is the 5!esent value of 's#1E000 to be 5aid at the end of yea!s if theco!!ect !is& ad6usted inte!est !ate is >I=elect co!!ect o5tion7

's# 1/ 's#1E/ 2's#$22#'s#/01# >


53/263

Question < of 1 =ta!t time7 0$70 7/ )M . Total Ma!&s7 1A set of 5ossible values that a !andom va!iable can assume and thei!

associated 5!obabilities of occu!!ence a!e !efe!!ed to as #=elect co!!ect o5tion7

)!obability dist!ibution The eC5ected !etu!nThe standa!d deviation,oefficient of va!iation

Question < of 1 =ta!t time7 0$70 722 )M . Total Ma!&s7 1

?hich of the follo9ing is FAD=H about )e!5etuity=elect co!!ect o5tion7

3t is a se!ies of cash flo9s,ash flo9s occu! fo! a s5ecific time 5e!iod 3ts cash flo9s a!e identical@one of the given o5tions

Question < 10 of 1 =ta!t time7 0$70 7/ )M . Total Ma!&s7 1?hich of the follo9ing is the value of beta fo! the ma!&et 5o!tfolio=elect co!!ect o5tion7

0#2-1#01#0 0#

Question < 11 of 1 =ta!t time7 0$70 72$ )M . Total Ma!&s7 1?hat is yield to matu!ity on a bond=elect co!!ect o5tion7

*elo9 the cou5on !ate 9hen the bond sells at a discountE and equal to thecou5on !ate 9hen the bond sells at a 5!emiumThe discount !ate that 9ill set the 5!esent value of the 5ayments equal tothe bond 5!ice


54/263

*ased on the assum5tion that any 5ayments !eceived a!e !einvested at thecou5on !ate@one of the above

Question < 12 of 1 =ta!t time7 0$70 7 )M . Total Ma!&s7 1?hat is the t!aditional a55!oach to9a!ds the valuation of a com5any=elect co!!ect o5tion7

The cost of ca5ital is inde5endent of the ca5ital st!uctu!e of the fi!mThe fi!m maintains constant !is& !ega!dless of the ty5e of financingem5loyedThe!e eCists no o5timal ca5ital st!uctu!eThat management can inc!ease the total value of the fi!m th!ough the

6udicious use of financial leve!age Question < 1$ of 1 =ta!t time7 0$70>72 )M . Total Ma!&s7 1?ho dete!mine the ma!&et 5!ice of a sha!e of common stoc&=elect co!!ect o5tion7

The boa!d of di!ecto!s of the fi!m

The stoc& eCchange on 9hich the stoc& is listed

The 5!esident of the com5any

3ndividuals buying and selling the stoc&

Question < 1/ of 1 =ta!t time7 0$70 70 )M . Total Ma!&s7 1?hat is diffe!ence bet9een sha!es and bonds=elect co!!ect o5tion7

*onds a!e !e5!esenting o9ne!shi5 9he!eas sha!es a!e not=ha!es a!e !e5!esenting o9ne!shi5 9he!eas bonds a!e not=ha!es and bonds both !e5!esent equity=ha!es and bond both !e5!esent liabilities Question < 1 of 1 =ta!t time7 0$70 7/ )M . Total Ma!&s7 1


55/263

3n efficient ma!&et the stoc& 5!ice de5ends u5on the !equi!ed !etu!n 9hichde5ends u5on #=elect co!!ect o5tion7

Ma!&et !is& Total !is&4ive!sified !is&@on- systematic !is&

The value of the bond is @%T di!ectly tied to the value of 9hich of thefollo9ing assets=elect co!!ect o5tion7

'eal assets of the businessDiquid assets of the businessFiCed assets of the businessDong te!m assets of the business

Quiz =ta!t Time7 0$70 )M Time Deft >sec s. Question < 2 of 1 =ta!t time7 0$70>70/ )M . Total Ma!&s7 13f @et )!esent Palue technique is usedE 9hat is the !an&ing c!ite!ion fo!5!o6ects

=elect co!!ect o5tion7,hoose the highest @)P,hoose the lo9est @)P,hoose the 5!o6ect 9ith longest te!m,hoose the 5!o6ect sho!test te!m

?hen the bond a55!oaches its matu!ityE the ma!&et value of the bonda55!oaches to9hich of the follo9ing

=elect co!!ect o5tion73nt!insic value*oo& value)a! valueSisto!ic cost


56/263

?hich of the follo9ing 5o!tfolio statistics statements is co!!ect=elect co!!ect o5tion7A 5o!tfolioBs eC5ected !etu!n is a sim5le 9eighted ave!age of eC5ected!etu!ns of the individual secu!ities com5!ising the 5o!tfolio#

A 5o!tfolioBs standa!d deviation of !etu!n is a sim5le 9eighted ave!age ofindividual secu!ity !etu!n standa!d deviations#The squa!e !oot of a 5o!tfolioBs standa!d deviation of !etu!n equals itsva!iance#The squa!e !oot of a 5o!tfolioBs standa!d deviation of !etu!n equals itscoefficient of va!iation#

5on 9hich of the follo9ing a fi!mBs deg!ee of o5e!ating leve!age 4%D.

de5ends5!ima!ily=elect co!!ect o5tion7=ales va!iabilityDevel of fiCed o5e!ating costs,loseness to its o5e!ating b!ea&-even 5oint4ebt-to-equity !atio

The statement of cash flo9s !e5o!ts a fi!mBs cash flo9s seg!egated into9hich of the follo9ing catego!ical o!de!

=elect co!!ect o5tion7%5e!atingE investingE and financing3nvestingE o5e!atingE and financingFinancingE o5e!ating and investingFinancingE investingE and o5e!ating

?hich of the follo9ing is the 5e!centage of inte!est cha!ged at eachcom5ounding time=elect co!!ect o5tion7@ominal inte!est 'ateHffective inte!est 'ateAnnual 5e!centage !ate


57/263

)e!iodic inte!est !ate

Acco!ding to MM 33E 9hat ha55ens 9hen a fi!mBs debt-to-equity !atio

inc!eases

=elect co!!ect o5tion73ts financial !is& inc!eases3ts o5e!ating !is& inc!easesThe eC5ected !etu!n on equity inc!easesThe eC5ected !etu!n on equity dec!eases

3f 9e invest in many secu!ities 9hich a!e to each othe! then it is

5ossible to!educe ove!all !is& fo! you! investment#=elect co!!ect o5tion7,om5a!able,o!!elatedSighly co!!elated@egatively co!!elated

An im5licit cost of adding debt to the ca5ital st!uctu!e is that it7=elect co!!ect o5tion7Adds inte!est eC5ense to the o5e!ating statement3nc!eases the !equi!ed !etu!n on equity'educes the eC5ected !etu!n4ec!eases the fi!mBs beta

?hich of the follo9ing is a ma6o! disadvantage of the co!5o!ate fo!m ofo!ganization

=elect co!!ect o5tion74ouble taCation of dividends3nability of the fi!m to !aise la!ge sums of additional ca5italDimited liability of sha!eholde!sDimited life of the co!5o!ate fo!m


58/263

?hich of the follo9ing can be used to calculate the !is& of the la!ge!5o!tfolio


=tanda!d deviationH)= a55!oachMat!iC a55!oachGo!don+s A55!oach

An a!bit!age o55o!tunity eCists if an investo! can const!uct a

investment 5o!tfolio that 9ill yield a su!e 5!ofit#=elect co!!ect o5tion7)ositive@egativeNe!oAll of the above

?hich of the follo9ing te!m may be defined as incidental cash flo9s thata!ise because of the effect of ne9 5!o6ect on the !unning business

=elect co!!ect o5tion7=un& cost%55o!tunity costHCte!nalities,ontingencies

?hich of the follo9ing !efe!s to the cost of ta&ing u5 one o5tion 9hilesac!ificing the othe!=elect co!!ect o5tion7

%55o!tunity cost%5e!ating cost


59/263

=un& costFloatation cost

Question < 1 of 1 =ta!t time7 0 7027$> )M . Total Ma!&s7 1?hen cou5on bonds a!e issuedE they a!e ty5ically sold at 9hich of thefollo9ing value=elect co!!ect o5tion7

Above 5a! value*elo9 5a!At o! nea! 5a! value

At a value un!elated to 5a!Question < 2 of 1 =ta!t time7 0 70$7$> )M . Total Ma!&s7 1?hich of the follo9ing is the 4ouble Hnt!y )!inci5le=elect co!!ect o5tion7

Assets Diabilities L =ha!eholde!s+ HquityAssets L Diabilities =ha!eholde!s+ Hquity Diabilities L Assets =ha!eholde!s+ Hquity@one of the given o5tions

Question < $ of 1 =ta!t time7 0 70/711 )M . Total Ma!&s7 1?hich of the follo9ing is @%T the ty5e of Syb!id o!ganizations=elect co!!ect o5tion7

=-Ty5e ,o!5o!ationDimited Diability )a!tne!shi5=ole )!o5!ieto!shi5 )!ofessional ,o!5o!ation Question < / of 1 =ta!t time7 0 70/7// )M . Total Ma!&s7 1?hich of the follo9ing is ty5e a Tem5o!a!y Account=elect co!!ect o5tion7

Asset


60/263

Diability'ese!ves'evenue

Question < of 1 =ta!t time7 0 70 71> )M . Total Ma!&s7 1?hich of the follo9ing is the maCimum amount of debt and othe! fiCed-cha!ge financing. that a fi!m can adequately se!vice=elect co!!ect o5tion7

4ebt ca5acity 4ebt-se!vice bu!denAdequacy ca5acity

FiCed-cha!ge bu!den Question < of 1 =ta!t time7 0 70 7/ )M . Total Ma!&s7 1The conventional measu!e of dis5e!sion is #=elect co!!ect o5tion7

A 5!obability dist!ibutionThe eC5ected !etu!nThe standa!d deviation ,oefficient of va!iation

Question < of 1 =ta!t time7 0 70 7 0 )M . Total Ma!&s7 1?hich of the follo9ings eC5!essed the 5!o5osition that the value of thefi!m is inde5endent of its ca5ital st!uctu!e=elect co!!ect o5tion7

The ,a5ital Asset )!icing ModelMKM )!o5osition 3 MKM )!o5osition 33The Da9 of %ne )!ice

Question < > of 1 =ta!t time7 0 70 72 )M . Total Ma!&s7 1?hich of the follo9ing is not the 5!esent value of the bond=elect co!!ect o5tion7


61/263

3nt!insic valueMa!&et 5!ice Fai! 5!ice

Theo!etical 5!ice

Question < of 1 =ta!t time7 0 70>72 )M . Total Ma!&s7 1?hich of the follo9ing is the main ob6ective of [Hconomics+=elect co!!ect o5tion7

)!ofit maCimization MaCimization of sha!eholde!s 9ealth,ollection of accu!ateE systematicE and timely financial data

All of the given o5tions

Question < 10 of 1 =ta!t time7 0 70>7 $ )M . Total Ma!&s7 1?hich of the follo9ing is FAD=H about )e!5etuity=elect co!!ect o5tion7

3t is a se!ies of cash flo9s,ash flo9s occu! fo! a s5ecific time 5e!iod 3ts cash flo9s a!e identical@one of the given o5tions Question < 11 of 1 =ta!t time7 0 70 71 )M . Total Ma!&s7 1All of the follo9ing a!e the !easons fo! nce!tain @)P calculations HX,H)T7=elect co!!ect o5tion7

Hstimated discount !ate does not change 9ith the ma!&etsHstimated Dife of 5!o6ect is doubtfulAnnual afte!-taC cash flo9s a!e difficult to estimateTiming of cash flo9s is not eCactly 5!edictable

Question < 12 of 1 =ta!t time7 0 7107$> )M . Total Ma!&s7 1?hich of the follo9ing is !elated to the use Do9e! financial leve!age=elect co!!ect o5tion7


62/263

FiCed costsPa!iable costs4ebt financing

,ommon equity financing

Question < 1$ of 1 =ta!t time7 0 7117$/ )M . Total Ma!&s7 1?hy a singleE ove!all cost of ca5ital is often used to evaluate 5!o6ects=elect co!!ect o5tion7

3t avoids the 5!oblem of com5uting the !equi!ed !ate of !etu!n fo! eachinvestment )!o5osal 3t is the only 9ay to measu!e a fi!mBs !equi!ed !etu!n

3t ac&no9ledges that most ne9 investment 5!o6ects have about the samedeg!ee of !is&3t ac&no9ledges that most ne9 investment 5!o6ects offe! about the sameeC5ected !etu!n

Question < 1/ of 1 =ta!t time7 0 712711 )M . Total Ma!&s7 1?hich of the follo9ing is the cash !equi!ed du!ing a s5ecific 5e!iod to meetinte!est eC5enses and 5!inci5al 5ayments=elect co!!ect o5tion7

4ebt ca5acity4ebt-se!vice bu!den Adequacy ca5acityFiCed-cha!ge bu!den

Question < 1 of 1 =ta!t time7 0 7127/ )M . Total Ma!&s7 1Acco!ding to MM 33E 9hat ha55ens 9hen a fi!mBs debt-to-equity !atioinc!eases=elect co!!ect o5tion7

3ts financial !is& inc!eases3ts o5e!ating !is& inc!easesThe eC5ected !etu!n on equity inc!eases The eC5ected !etu!n on equity dec!eases


63/263

Question < 1 of 1 =ta!t time7 0>72$71 AM . Total Ma!&s7 1?ho dete!mine the ma!&et 5!ice of a sha!e of common stoc&=elect co!!ect o5tion7

The boa!d of di!ecto!s of the fi!m The stoc& eCchange on 9hich the stoc& is listed

The 5!esident of the com5any

3ndividuals buying and selling the stoc&

Question < 2 of 1 =ta!t time7 0>72$7/ AM . Total Ma!&s7 1An investment 5!o5osal should be 6udged in 9hethe! o! not it 5!ovides7=elect co!!ect o5tion7

A !etu!n equal to the !etu!n !equi!e by the investo!A !etu!n mo!e than !equi!ed by investo!A !etu!n less than !equi!ed by investo!A !etu!n equal to o! mo!e than !equi!ed by investo!

Question < $ of 1 =ta!t time7 0>72/70 AM . Total Ma!&s7 1So9 =ha!eholde! 9ealth is !e5!esented in a fi!m=elect co!!ect o5tion7

The numbe! of 5eo5le em5loyed in the fi!mThe boo& value of the fi!mBs assets less the boo& value of its liabilitiesThe ma!&et 5!ice 5e! sha!e of the fi!mBs common stoc&

The amount of sala!y 5aid to its em5loyees


64/263

Question < / of 1 =ta!t time7 0>72/72 AM . Total Ma!&s7 1

The !etu!n in eCcess to !is& f!ee !ate that investo!s !equi!e fo! bea!ing thema!&et !is& is &no9n as7=elect co!!ect o5tion7

4efault !is& 5!emium=ove!eign 'is& )!emiumMa!&et !is& 5!emiumMatu!ity !is& 5!emium

Question < of 1 =ta!t time7 0>72/7 $ AM . Total Ma!&s7 13n the dividend discount modelE 9hich of the follo9ing a!e notinco!5o!ated into the discount !ate=elect co!!ect o5tion7

'eal !is&-f!ee !ate'is& 5!emium fo! stoc&s'etu!n on assetsHC5ected inflation !ate

Question < of 1 =ta!t time7 0>72 70 AM . Total Ma!&s7 1?hich of the follo9ing equation is @%T co!!ect=elect co!!ect o5tion7

G!oss 'evenue J Admin K %5e!ating HC5enses L %5e!ating 'evenue%the! HC5enses %the! 'evenue L H*3TH*3T J Financial ,ha!ges K 3nte!est L H*T@et 3ncome J 4ividends L 'etained Ha!ning


65/263

Question < of 1 =ta!t time7 0>72 72 AM . Total Ma!&s7 1?hich of the follo9ing 9ould be conside!ed a cash-flo9 item f!om an

o5e!ating activity=elect co!!ect o5tion7

,ash outflo9 to the gove!nment fo! taCes ,ash outflo9 to sha!eholde!s as dividends

,ash inflo9 to the fi!m f!om selling ne9 common equity sha!es

,ash outflo9 to 5u!chase bonds issued by anothe! com5any

Question < > of 1 =ta!t time7 0>72 7/0 AM . Total Ma!&s7 1As inte!est !ates go u5E the 5!esent value of a st!eam of fiCed cash flo9s

#=elect co!!ect o5tion7

Goes do9n

Goes u5

=tays the same

,an not be found f!om the given info!mation

Question < of 1 =ta!t time7 0>72 7 1 AM . Total Ma!&s7 1,hoose among the follo9ingsE the co!!ect statement !ega!ding eve!y 6ou!nalent!y#=elect co!!ect o5tion7

=um of 4ebits L =um of ,!edits=um of 4ebits Z=um of ,!edits=um of 4ebits \ =um of ,!edits


66/263

@one of the given o5tions

Question < 10 of 1 =ta!t time7 0>72 71> AM . Total Ma!&s7 1To inc!ease a given futu!e valueE the discount !ate should be ad6usted #=elect co!!ect o5tion7

59a!d

4o9n9a!d

Fi!st u59a!d and then do9n9a!d@one of the given o5tions

Question < 11 of 1 =ta!t time7 0>72 7$1 AM . Total Ma!&s7 1?hat is the long-!un ob6ective of financial management=elect co!!ect o5tion7

MaCimize ea!nings 5e! sha!e MaCimize the value of the fi!mBs common stoc&MaCimize !etu!n on investment

MaCimize ma!&et sha!e

Question < 12 of 1 =ta!t time7 0>72 7 0 AM . Total Ma!&s7 1?hich of the follo9ing is @%T the ty5e of Syb!id o!ganizations=elect co!!ect o5tion7

=-Ty5e ,o!5o!ationDimited Diability )a!tne!shi5=ole )!o5!ieto!shi5


67/263

)!ofessional ,o!5o!ation

Question < 1$ of 1 =ta!t time7 0>72 70 AM . Total Ma!&s7 1?hich of the follo9ing is @%T an eCam5le of a financial inte!media!y=elect co!!ect o5tion7

?isconsin =KDE a savings and loan association =t!ong ,a5ital A55!eciationE a mutual fund

Mic!osoft ,o!5o!ationE a soft9a!e fi!m

,ollege ,!editE a c!edit union

Question < 1/ of 1 =ta!t time7 0>72 72 AM . Total Ma!&s7 1?hich of the follo9ing value of the sha!es changes 9ith investo!+s5e!ce5tion about the com5any+s futu!e and su55ly and demand situation=elect co!!ect o5tion7

)a! valueMa!&et value3nt!insic valueFace value

Question < 1 of 1 =ta!t time7 0>72 7$> AM . Total Ma!&s7 1?hich of the follo9ing a!e &no9n as 4isc!etiona!y Financing=elect co!!ect o5tion7

,u!!ent liabilities,u!!ent assets


68/263

FiCed assetsDong-te!m liabilities

Question < 1 of 1 =ta!t time7 0 70/7/ )M . Total Ma!&s7 1

?hich if the follo9ing !efe!s to ca5ital budgeting=elect co!!ect o5tion7

3nvestment in long-te!m liabilities3nvestment in fiCed assets3nvestment in cu!!ent assets3nvestment in sho!t-te!m liabilities

Question < 2 of 1 =ta!t time7 0 70 70 )M . Total Ma!&s7 1The value of a bond is di!ectly de!ived f!om 9hich of the follo9ing=elect co!!ect o5tion7

,ash flo9s,ou5on !ecei5ts)a! !ecove!y at matu!ityAll of the given o5tions

Question < $ of 1 =ta!t time7 0 70 72> )M . Total Ma!&s7 1All of the follo9ing a!e the financial statements used fo! the 5u!5ose of!e5o!ting and analysis HX,H)T7=elect co!!ect o5tion7

*alance =heet3ncome =tatement,ash budget=tatement of 'etained Ha!nings

Question < / of 1 =ta!t time7 0 70 7/2 )M . Total Ma!&s7 1A set of 5ossible values that a !andom va!iable can assume and thei!associated 5!obabilities of occu!!ence a!e !efe!!ed to as #=elect co!!ect o5tion7


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)!obability dist!ibutionThe eC5ected !etu!nThe standa!d deviation,oefficient of va!iation

Question < of 1 =ta!t time7 0 70 7 )M . Total Ma!&s7 1?hich of the follo9ing equation is @%T co!!ect=elect co!!ect o5tion7

G!oss 'evenue J Admin K %5e!ating HC5enses L %5e!ating 'evenue%the! HC5enses %the! 'evenue L H*3T

H*3T J Financial ,ha!ges K 3nte!est L H*T@et 3ncome J 4ividends L 'etained Ha!ning

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