vu fin622 Final Term - Quiz No.13
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 will decrease the cost of debt?
A decrease in the tax rate
A decrease in Current Liability
An increase in the tax rate
An increase in Current Assets
Question 2: Which of the following would be consistent with a more aggressive (i.e., a high risk profitability) approach to financing working capital?
Financing permanent inventory buildup with long-term funds.
Financing seasonal needs with short-term funds.
Financing short-term needs with short-term funds.
Financing some long-term needs with short-term funds
Question 3: Holding everything else constant, increasing fixed costs __________ the firms breakeven point.
Decreases
Increases the covariance of
Increases
Does not affect
Question 5: Suppose that market now requires an 8 percent return for a bond that was issued some years ago with a 10 percent coupon. This bond will currently be priced:
At a premium over face value.
At par value.
At a discount from face value.
At face value.
Question 6: Which of the following best define the term Capital Structure?
The proportion of equity used by a firm
The proportion of debt and equity capital used by a firm
The proportion of long-term liabilities used by a firm
The proportion of short-term bank loan used by a firm
Question 7: Project GROW will require $250,000 to purchase new machinery. Capitalized expenditures total $40,000. The new machine will require that the firm purchase some additional inventory which will result in an increase in net working capital of $50,000. What is the initial cash outflow?
300000
350000
270000
None of the given options
Question 8: Which one of the following statements describe Shareholders wealth in a firm?
The number of people employed in the firm
The book value of the firms assets less the book value of its liabilities
The market price per share of the firms common stock
The amount of salary paid to its employees
Question 9: Which of the following is a tool that identifies the strengths, weaknesses, opportunities and threats of an organization?
SWOT Analysis
Trend Analysis
Fundamental Analysis
Technical Analysis
Question 10: Which of the following methods would be most suitable for selecting capital project (s) in case of multi-period capital rationing?
Simple payback period
Discounted payback period
Multiple Internal Rate of Return
Linear Programming
