vu mgt201 Final Term - Quiz No.10
vu mgt201 Financial Management Quiz
This quiz belongs to book/course code vu mgt201 Financial Management of vu organization. We have 24 quizzes available related to the book/course Financial Management. 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: The most expensive source of financing for a firm is:
debt
preferred stock
retained earnings
new common stock
Question 2: __________ is paid by companies with lower grade bonds like CC or C ratings.
Default risk premium
Sovereign Risk Premium
Market risk premium
Maturity risk premium
Question 3: All of the following except one are tax-deductible expenses.
interest expense
depreciation
common stock dividends
income taxes
Question 4: If a corporate charter says that current stockholders must be given the first option to purchase new stock, then that is a __________ rights offering.
Pre-emptive
Rights-on
Ex-rights
none of the above
Question 5: The __________ is the percentage change in operating income that results from a percentage change in sales.
degree of financial leverage
breakeven point
degree of operating leverage
degree of combined leverage
Question 6: The percent of sales method of financial forecasting shows us the relationship between __________ and financing needs.
changes in the level of liabilities
changes in the level of assets
changes in debt
changes in the level of sales
Question 7: __________ voting elects a member of the board of directors of a firm with a 51% vote.
Cumulative
Preferred
Majority
none of the above
Question 8: The cost of issuing new stock is called:
the cost of equity
flotation costs
marginal cost of capital
none of the above
Question 9: __________ focuses on long-term decision-making regarding the acquisition of projects.
Working Capital Management
Capital Budgeting
Cash Budgeting
none of the above
Question 10: The cost of each component of a firm's capital structure multiplied by its weight in the capital structure is called the:
marginal cost of capital
cost of debt
weighted average cost of capital
none of the above
