vu fin622 Final Term - Quiz No.15
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: What is the main purpose of constructing a portfolio of financial assets?
To maximize risk and minimize the return
To maximize the return and minimize the risk
To minimize the risk and minimize the return
To minimize the return and minimize the risk
Question 2: A dividend payment made in the form of additional shares, rather than a cash payout is known as:
Stock Dividend
Cum Dividend
Ex Dividend
Ex Dividend Extra Dividend
Question 3: Which of the following measure compares the risk of an unlevered company to the risk of the market?
Ungeared Beta
Geared Beta
Portfolio Beta
Stock Beta
Question 4: Which of the following focuses on long-term decision-making regarding the acquisition of projects?
Working Capital Management
Capital Budgeting
Cash Budgeting
None of the given options
Question 5: Which of the following transactions would occur in a primary financial market?
Initial public offering
Buying mutual funds certificates
Selling old shares
Buying bonds issued in previous year
Question 6: Holmes Aircraft recently announced an increase in its net income, yet its net cash flow declined relative to last year. Which of the following could explain this performance?
The company taxes increased.
The company depreciation expense declined.
The company operating income declined.
All of the given statements are correct.
Question 7: Which of the following is considered as a risk free financial asset?
Government T-bills
Junk bonds
Preferred stock
Secured bonds
Question 8: Which of the following statements applies to intrinsic value of a security?
Intrinsic value of a security always exceeds its book value.
Intrinsic value of a security rises when the liquidation value falls.
Intrinsic value of a security is the price around which its market value should closely fluctuate.
Intrinsic value of a security is its closing market value when it is actively traded
Question 9: The largest single source of short-term financing for businesses collectively is
Commercial paper.
Trade credit.
Bank loans.
Trade acceptances.
Question 10: Which of the following is the correct definition for spread in cash management?
The difference between optimal cash balance and Nominal Cash balance
The difference between opining cash balance and ending cash balance.
The difference between upper limit and lower limit of cash balances
The difference between optimal cash balance and ending cash balance
