vu fin622 Final Term - Quiz No.8
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: In analyzing a long-term investment proposal,
Include opportunity costs.
Include before-tax interest payments.
Include after-tax interest payments.
Include sunk costs.
Question 2: When working capital management is discussed, __________ and __________ tend to be thought of as forms of spontaneous financing.
Short-term debt, cash
Accounts payable, accruals
Accounts payable, short-term debt
Accruals, cash
Question 3: Which of the following would lower a firms operating break-even point?
An increase in the cost of goods sold
An increase in selling price
An increase in wages paid to employees
An increase in total sales
Question 4: Which of the following statement applies to employees' buyout?
Employees are promoted to the higher positions
Employees are given more responsibilities
Employees buy majority shares in the firm
Employees buy shares of a competing firm
Question 6: Which of the following statement is correct with respect to a company heavily financed by debt?
The company has a higher level of risk
The company has high cost of capital
The company is unable to meet its debt obligations
The company can not issue common shares
Question 7: The present value of Rs.5,000 received at the end of 5 years, discounted at 10 percent, is closest to:
Rs.3,105.
Rs.823.
Rs.620.
Rs.3,403.
Question 10: Which of following are two most likely motives in explaining why firms hold cash?
Speculative motive and the precautionary motive
Transactions motive and the speculative motive.
Precautionary motive and the managerial entrenchment motive.
Transactions motive and the precautionary motive.
