vu fin622 Final Term - Quiz No.5
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.
NVAEducation also facilitates users to contribute in online competitions with other students to make a challenging situation to learn in a creative way. You can create one to one, and group competition on an topic of a book/course code. Also on NVAEducation you can get certifications by passing the online quiz test.
Question 2: Which of the following statement best describe the term Market Correction?
Market Correction refers to the situation where equilibrium of supply & demand of shares occurs in the market
Market correction occurs when shares' intrinsic values becomes equal to face values
Market Correction occurs when there is a boom in the economy
Market Correction occurs when inflation rate is above the market interest rate
Question 3: A leveraged buyout
is an ownership transfer financed largely by debt.
is facilitated by rising interest rates.
usually involves a labor-intensive business.
results in a publicly held corporation.
Question 4: Which of the following capital budgeting technique ignores profitability and time value of money?
Net Present Value
Internal Rate of Return
Discounted Pay Back period
Simple Pay Back Period
Question 5: Which of the following is determined by variance of an investments returns?
Volatility of the rates of return.
Probability of a negative return.
Historic return over long periods.
Average value of the investment
Question 6: Which of the following represents the compensation that the market demands in exchange for owning the asset and bearing the risk of ownership?
Market risk Premium
A firms Cost of debt
Risk free rate of return
A firms Cost of equity
Question 7: Which of the following shows the reward to risk ratio of a security A ?
Expected return of A (rA) - Risk free return / Beta of A
Expected return of A (rA) - Risk free return / required return of A
Expected return of A (rA) - Beta of A / Risk free return
Risk free return - Expected return of A (rA) / Beta of A
Question 8: Diversification eliminates unique risk. But there is some risk that diversification can not eliminates. This is called as:
Market Risk
Systematic Risk
Unsystematic Risk
All of the given options
Question 9: The International Co. is holding cash as a buffer in case of an unexpected need with operations. This is an example of the __________ motive for holding cash.
Precautionary
Speculative
Transactions
Capital needs
Question 10: Which of the following method can be used to forecast the sales of a firm?
Price - earning ratio
Cash flow estimation
Fundamental Analysis
Regression Analysis
