vu mgt201 Final Term - Quiz No.12
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: Securities that have a mandatory dividend are:
bonds
preferred stock
common stock
none of the above
Question 2: Why we need Capital rationing?
Because, there are not enough positive NPV projects
Because, companies do not always have access to all of the funds they could make use of
Because, managers find it difficult to decide how to fund projects
Because, banks require very high returns on projects
Question 3: In developing the pro forma balance sheet, we get common stock from __________.
the firm's previous balance sheet
the firm's cash budget
the firm's income statement
none of the above
Question 4: Ratio analysis allows a firm to compare its performance to:
other firms in the industry
other time periods within the firm
other industries
all of the above
Question 5: One major disadvantage of the sole proprietorship is __________.
simplicity of decision-making
unlimited liability
low operational costs
none of the above
Question 6: The typical merger premium is:
0.2
20-40%
40-60%
none of the above
Question 7: Examples of cash disbursements are all but __________.
payment for materials purchased
collection of accounts receivable
payment of dividends
payment of taxes
Question 8: __________ is the point at which firm profit is equal to zero.
breakeven
operating breakeven
financial leverage
combined breakeven
Question 9: If a bond's value rises above its par value during its life, interest rates have:
gone up
gone down
stayed the same
there is no correlation with interest rates
Question 10: The cost of capital at the retained earnings breakpoint is the:
weighted average cost of capital
marginal cost of capital
cost of new stock
none of the above
