vu fin622 Final Term - Quiz No.10
vu fin622 Corporate Finance Quiz
This quiz belongs to book/course code vu fin622 Corporate Finance of vu organization. We have 17 quizzes available related to the book/course Corporate Finance. This quiz has a total of 10 multiple choice questions (MCQs) to prepare and belongs to topic Final 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: Which of the following is a long-term source of financing for a firm?
Corporate bonds
Money market instruments
Trade credit
Accounts payables
Question 2: A project would be financially feasible in which of the following situations?
If Internal Rate of Return of a project is greater than zero
If Net Present Value of a project is less than zero
If the project has Profitability Index less than one
If the project has Profitability Index greater than one
Question 3: Which of the following could be a major disadvantage of an LBO?
The acquired firm would have a high interest expense
The acquired firm would have a high operating cost
The acquired firm would have a high manufacturing cost
The acquired firm would have a high operating risk
Question 4: Management of a firm prefers buyout because of the following reason?
The company is selling at below the market price
The company has good future prospects
Company offers good product
Company management could change
Question 5: Which of the following statements is TRUE regarding Profitability Index?
It ignores time value of money
It ignores future cash flows
It ignores the scale of investment
It ignores return on investment
Question 6: The key to the accuracy of the cash budget is:
The sales forecast.
The expenses forecast.
The inventory control method used.
The seasonality of cash flows.
Question 7: Expected changes in capital expenditures and firm dividend policy during the next year are both likely to influence __________.
Cash receipts of the firm
Cash disbursements of the firm
Earned (receipts) from Treasury bills held by the firm
Disbursements to holders of the firms 10-year, 8% fixed rate bonds
Question 9: In which of the following conditions a stock is said to be overvalued?
If the stock has market value less than the expected value
If the stock has market value equal to the expect value
If the stock has market value more than the expected value
If the stock has market value less than its intrinsic value
Question 10: Which of the following statements is TRUE regarding Balance Sheet of a firm?
It reports how much of the firm's earnings were retained in the business rather than paid out in dividends.
It reports the impact of a firm's operating, investing, and financing activities on cash flows over an accounting period.
It shows the firm's financial position at a specific point in time.
It summarizes the firm's revenues and expenses over an accounting period.
