Finance MCQs

Page No. 2

Project which is started by firm for increasing sales is classified as______________?


aNew expansion project


bOld expanded project


cFirm borrowing project


dProduct line selection


View Answer New expansion project

Cash flows that should be considered for decision in hand are classified as____________?


aRelevant cash flows


bIrrelevant cash flows


cMarginal cash flows


dTransaction cash flows


View Answer Relevant cash flows

Redemption option which protects investors against rise in interest rate is considered as________?


aRedeemable at deferred


bRedeemable at par


cRedeemable at refund


dRedeemable at finding


View Answer Redeemable at par

Bond which is offered below its face value is classified as______________?


aPresent value bond


bOriginal issue discount bond


cCoupon issued bond


dDiscounted bond



In capital budgeting, number of non-normal cash flows have internal rate of returns are____________?


aOne


bMultiple


cAccepted


dNon-accepted


View Answer Multiple

In capital budgeting, an internal rate of return of project is classified as its__________?


aExternal rate of return


bInternal rate of return


cPositive rate of return


dNegative rate of return



An uncovered cost at start of year is divided by full cash flow during recovery year then added in prior years to full recovery for calculating__________?


aOriginal period


bInvestment period


cPayback period


dForecasted period


View Answer Payback period

Return on assets = 6.7% and equity multiplier = 2.5% then return on equity will be ______________?


a16.75%


b2.68%


c0.37%


d9.20%


View Answer 16.75%

Low price for earnings ratio is result of________________?


aLow riskier firms


bHigh riskier firms


cLow dividends paid


dHigh marginal rate


View Answer Low riskier firms

Long-term equity anticipation security is usually classified as__________?


aShort-term options


bLong-term options


cShort money options


d Yearly call


View Answer Long-term options

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