vu fin622 Final Term - Quiz No.11
vu fin622 Corporate Finance Quiz
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Question 1: Which of the following is a dividend that is paid in the form of additional shares, rather than a cash payout?
Stock Dividend
Cum Dividend
Ex Dividend
Extra Dividend
Question 2: The initial cost of a conventional project is $14,000. The present value of the projects cash inflows, discounted at 12 percent, is $12,500. The internal rate of return is
Less than 12 percent.
Greater than 12 percent.
Equal to 12 percent.
Cannot tell without additional information
Question 4: Which one of the following transactions take place in a primary financial market?
Initial Public Offering
Buying Mutual Funds Certificates
Selling old shares
Buying Bonds issued in previous year
Question 5: In inventory management, the storage cost of inventory is considered as:
Carrying cost
Reorder cost
Stock out cost
Safety cost
Question 6: According to the Miller Orr Model, upper limit for cash balance is equal to:
Lower limit + Spread
Spread - Lower limit
Optimal limit + Lower limit
Lower limit - Spread
Question 7: Which one of the following statements applies to Dividend Growth Model?
It is difficult to understand and use
It is used for non-listed companies
It is used for debt securities also
It do not consider risk level of a security
Question 8: Which of the following is the average time period between buying inventory and receiving cash proceeds from its eventual sale?
Operating Cycle
Cash Cycle
Inventory period
Inventory Turnover
Question 9: In which of the following acquisition strategy, a purchaser has complete knowledge of the acquiring firm?
Management Buy-In
Management buyout
Consolidation
Amalgamation
