vu mgt201 Final Term - Quiz No.4
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 component of the risk-adjusted discount rate that is derived from the risk of Treasury securities is:
risk premium
cost of capital
call premium
risk-free rate
Question 2: The expectations hypothesis says that __________ interest rates are a function of __________ interest rates.
short-term; long-term
long-term; short-term
short-term; short-term
none of the above
Question 3: Merging with an unrelated company is called a __________ merger.
conglomerate
horizontal
vertical
none of the above
Question 4: Which of the following have ownership interest in the firm?
Common stockholders
Preferred stockholders
Bondholders
All of the above
Question 5: A firm's cost of capital is the:
cost of borrowing money
cost of issuing stock
cost of bonds
overall cost of financing to the firm
Question 6: A highly leveraged firm is __________ risky than its peers.
less
more
the same
none of the above
Question 7: The __________ ratio indicates the return firm shareholders are earning.
return on assets
return on investment
return on equity
net profit margin
Question 8: Which of the following is a tender offer that uses debt to buy the firm?
hostile takeover
negotiated merger
two-step buyout
leveraged buyout
Question 9: An investment banker may engage in buying and selling a new issue of securities in order to ensure a liquid market. This function is called __________.
market making
advising
agency function
underwriting
Question 10: The conversion ratio is the:
ratio of the conversion premium to market value of the convertible security.
price at which a convertible security is exchanged for common stock.
number of shares of common stock in to which the convertible may be converted.
none of the above
