vu mgt201 Final Term - Quiz No.24
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: One of the limitations of the __________ is that it is based on historical costs.
income statement
statement of cash flows
balance sheet
none of the above
Question 2: Which of the following capital budgeting methods states the return of a project as a percentage?
payback period
net present value
internal rate of return
none of the above
Question 3: The __________ is the stated interest rate at the time the bond was issued.
coupon rate
effective rate
yield to maturity
internal rate of return
Question 4: All of the following are asset utilization ratios except:
average collection period
inventory turnover
receivables turnover
return on assets
Question 5: A capital budgeting technique through which discount rate equates the present value of the future net cash flows from an investment project with the project’s initial cash outflow is known as
Payback period
Internal rate of return
Net present value
Profitability index
Question 6: If a firm's debt ratio is 55%, this means __________ of the firm's assets are financed by equity financing.
0.55
0.5
0.45
not enough information to answer question
Question 7: The use of safety stock by a firm will:
reduce inventory costs
increase inventory costs
have no effect on inventory costs
none of the above
Question 8: Which of the following are functions of an investment banker?
underwriter
market maker
advisor
all of the above
Question 9: Which of the following techniques would be used for a project that has non–normal cash flows?
Internal rate of return
Multiple internal rate of return
Modified internal rate of return
Net present value
Question 10: A convertible security is:
a security that can be converted into debt at the option of the owner.
a security that can be converted into preferred stock at the option of the owner.
a security that can be converted into common stock at the option of the owner.
none of the above
