vu acc501 Mid Term - Quiz No.6
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: Interest rates and bond prices :
Move in the same direction
Move in the opposite direction
Sometimes move in the same and sometimes in the opposite direction
Have no relation with each other
Question 3: Which of the following is NOT a characteristic of preferred stock?
Dividends on these stocks cannot be cumulative
These stocks have dividend priority over common stocks
These stocks have stated liquidating value
These bonds hold credit ratings much like bonds
Question 4: What will be the value of a Rs. 1,000 face-value bond with an 8% coupon rate at 8% required rate of return?
More than its face value
Less than its face value
Equal to its face value
Cannot be determined without more information
Question 5: In which type of market, new securities are traded?
Primary market
Secondary market
Tertiary market
None of the given options
Question 6: Which of the following statement is CORRECT regarding compound interest?
It is the most basic form of calculating interest.
It earns profit not only on principal but also on interest.
It is calculated by multiplying principal by rate multiplied by time.
It does not take into account the accumulated interest for calculation.
Question 7: __________ is the current value of the future cash flow discounted at an appropriate discount rate.
Present Value
Future Value
Capital Gain
Net Profit
Question 9: The future value of first Rs. 100 in 2 years at 8% discount is:
Rs. 116.64
Rs. 111.64
Rs. 164.64
Rs. 164.61
Question 10: Which of the following is a cash flow from financing activity?
Cash outflow to the government for taxes
Cash outflow to shareholders as dividends
Cash outflow to lenders as interest
Cash outflow to purchase bonds issued by another company
