vu acc501 Mid Term - Quiz No.2
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: In the formula ke >= (D1/P0) + g, what does (D1/P0) represent?
The expected capital gains yield from a common stock
The expected dividend yield from a common stock
The dividend yield from a preferred stock
The interest payment from a bond
Question 2: Ratios look at the relationships between individual values and relate them to how a company:
Has performed in the past
Might perform in the future
Both a & b
None of the given options
Question 4: Ammar is running a company Ammar & Co. He has asked you to comment on company's ability to pay its bills over the short run without undue stress. For this purpose you will study which category of ratios of the company?
Profitability Ratios
Liquidity ratios
Debt ratios
Turnover ratios
Question 6: A project has an initial investment of Rs. 400,000. What would be the NPV for the project if it has a profitability index of 1.15?
Rs. 30000
Rs. 40,500
Rs. 50,000
Rs. 60,000
Question 7: A __________ is an agent who arranges security transactions among investors.
Broker
Dealer
Member
Specialist
Question 8: The preferred stock of a company currently sells for Rs. 25 per share. The annual dividend of Rs. 2.50 is fixed. Assuming a constant dividend forever, what is the rate of return on this stock?
5.00 percent
7.00 percent
8.45 percent
10.0 percent
Question 9: The most common application of term "Finance" involves raising money to acquire __________.
Current Asset
Fixed Asset
Intangible Asset
All of the given options