vu acc501 Mid Term - Quiz No.15
vu acc501 Business Finance Quiz
This quiz belongs to book/course code vu acc501 Business Finance of vu organization. We have 30 quizzes available related to the book/course Business Finance. This quiz has a total of 10 multiple choice questions (MCQs) to prepare and belongs to topic Mid Term. NVAEducation wants its users to help them learn in an easy way. For that purpose, you are free to prepare online MCQs and quizzes.
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Question 1: The principal amount of a bond at issue is called:
Par value
Coupon value
Present value of an annuity
Present value of a lump sum
Question 3: find the average 2%,5%,6%,8%
0.05
0.0525
0.06
0.08
Question 4: Which of the following ratio gives an idea as to how efficient management is at using its assets to generate earnings?
Profit Margin
Return on Assets
Return on Equity
Total Assets Turnover
Question 5: Which of the following measure reveals how much profit a company generates with the money shareholders have invested?
Profit Margin
Return on Assets
Return on Equity
Debt-Equity Ratio
Question 6: What would be the level of EBIT if Imran Corporation uses both debt as well as equity financing in its capital structure, it has a cash coverage ratio of 7.5 times, annual interest expense is Rs.1 million and annual depreciation is Rs.3 million?
Rs. 2.5 million
Rs. 3 million
Rs. 3.5 million
Rs.4.5 million
Question 7: A given rate is quoted as 9 percent APR, but the EAR is 9.38 percent. What is the compounding period?
Semiannually
Quarterly
Monthly
Daily
Question 8: You can determine the number of periods (n) in a present value calculation, if you know:
Future amount
Present value
Interest rate
All of the given options
Question 9: If sales are to grow at a rate higher than the sustainable growth rate, the firm must:
Increase Profit Margin
Increase Total Assets Turnover
Sell new shares
All of the given options.
Question 10: Interest Coverage Ratios are also known as:
Times Interest Earned (TIE) Ratios
Liquidity Ratios
Debt Ratios
Asset Management Ratios
