vu mgt201 Final Term - Quiz No.19
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: Coefficient of variation measures:
portfolio risk
the risk of an individual security
the degree of risk per unit of expected return.
none of the above
Question 2: The first step in developing a pro forma income statement is to:
build a sales forecast
determine the production schedule
determine cost of goods sold
none of the above
Question 3: According to the reinvestment rate assumption, which method of capital budgeting assumes cash flows are reinvested at the project's rate of return?
payback period
net present value
internal rate of return
none of the above
Question 4: If the Net Present Values of two, mutually exclusive options are both greater than zero, which option should be selected if the firm uses the Net Present Value method?
The one with the largest Net Present Value.
The one with the smallest Net Present Value.
Either one. Both are greater than the cost of capital.
None of the above
Question 5: The Board of Directors may do which of the following with net income?
put it in the cash account
retain it
pay it out as dividends
B & C above
Question 6: When faced with mutually exclusive option, which project should be accepted under the payback method?
The one with the longest payback period.
The one with the shortest Payback period.
It doesn’t matter because the payback method is not theoretically correct.
None of the above.
Question 8: Planning for future growth is called:
capital budgeting
working capital management
financial forecasting
none of the above
Question 10: One provision of preferred stock is that they can participate in the firm's yield during good years. That provision is __________.
the call provision
cumulative dividends
the participation provision
the conversion provision
