11-24-2010, 03:19 PM
Question # 1 of 15 ( Start time: 06:36:00 AM ) Total Marks: 1
Which of the following value of the shares changes with investor’s perception about the company’s future and supply and demand situation?
Select correct option:
Par value
Market value
Intrinsic value
Face value
Question # 2 of 15 ( Start time: 06:36:23 AM ) Total Marks: 1
Which one of the following selects the combination of investment proposals that will provide the greatest increase in the value of the firm within the budget ceiling constraint?
Select correct option:
Cash budgeting
Capital budgeting
Capital rationing
Capital expenditure
Question # 3 of 15 ( Start time: 06:36:59 AM ) Total Marks: 1
Mutually Exclusive projects refer to what?
Select correct option:
One can invest in one of the projects and not in both
One can invest in both projects
Cash flows of the two projects are not linked to each other
Cash flows of the two projects are linked to each other
Question # 4 of 15 ( Start time: 06:37:46 AM ) Total Marks: 1
Which of the following is not the present value of the bond?
Select correct option:
Intrinsic value
Market price
Fair price
Theoretical price
Question # 5 of 15 ( Start time: 06:38:26 AM ) Total Marks: 1
When the zero coupon bond approaches to its maturity, the market value of the bond approaches to which of the following?
Select correct option:
Intrinsic value
Book value
Par value
Historic cost
Question # 6 of 15 ( Start time: 06:38:53 AM ) Total Marks: 1
Who or what is a person or institution designated by a bond issuer as the official representative of the bondholders?
Select correct option:
Indenture
Debenture
Bond
Bond trustee
Question # 7 of 15 ( Start time: 06:39:25 AM ) Total Marks: 1
Which of the following is the percentage of interest charged at each compounding time?
Select correct option:
Nominal interest Rate
Effective interest Rate
Annual percentage rate
Periodic interest rate
Question # 8 of 15 ( Start time: 06:40:04 AM ) Total Marks: 1
Which of the following is/are the component(s) of working capital management?
Select correct option:
Current assets
Fixed assets
Fixed assets and long-term liabilities
Current assets and current liabilities
Question # 9 of 15 ( Start time: 06:40:28 AM ) Total Marks: 1
Which of the following refers to bringing the future cash flow to the present time?
Select correct option:
Net present value
Discounting
Opportunity cost
Internal rate of return
Question # 10 of 15 ( Start time: 06:40:55 AM ) Total Marks: 1
Which of the following is TRUE about IRR (Internal Rate of Return)?
Select correct option:
It changes for each and every year over the life of the project
It remains same for each and every year over the life of the project
It increases over the life of the project
It decreases over the life of the project
Question # 11 of 15 ( Start time: 06:41:54 AM ) Total Marks: 1
What is the present value of Rs. 3,500,000 to be paid at the end of 50 years if the correct risk adjusted interest rate is 18%?
Select correct option:
Rs.105,000
Rs.1,500,000
Rs.3975,000
Rs. 350,000
Question # 12 of 15 ( Start time: 06:42:42 AM ) Total Marks: 1
Effective interest rate is different from nominal rate of interest because:
Select correct option:
Nominal interest rate ignores compounding
Nominal interest rate includes frequency of compounding
Periodic interest rate ignores the effect of inflation
All of the given options
Question # 13 of 15 ( Start time: 06:43:40 AM ) Total Marks: 1
Which of the following refers to time value of money concept?
Select correct option:
A rupee in one’s hand at present is worth less than the rupee that one is going to receive tomorrow
A rupee in one’s hand at present is worth more than the rupee that one is going to receive tomorrow
A rupee in one’s hand at present is worth same as the rupee that one is going to receive tomorrow
All of the given options
Question # 14 of 15 ( Start time: 06:44:27 AM ) Total Marks: 1
Which of the following are known as Discretionary Financing?
Select correct option:
Current liabilities
Current assets
Fixed assets
Long-term liabilities
Question # 15 of 15 ( Start time: 06:44:58 AM ) Total Marks: 1
If Net Present Value technique is used, what is the ranking criterion for projects?
Select correct option:
Choose the highest NPV
Choose the lowest NPV
Choose the project with longest term
Choose the project with shortest term
Which of the following value of the shares changes with investor’s perception about the company’s future and supply and demand situation?
Select correct option:
Par value
Market value
Intrinsic value
Face value
Question # 2 of 15 ( Start time: 06:36:23 AM ) Total Marks: 1
Which one of the following selects the combination of investment proposals that will provide the greatest increase in the value of the firm within the budget ceiling constraint?
Select correct option:
Cash budgeting
Capital budgeting
Capital rationing
Capital expenditure
Question # 3 of 15 ( Start time: 06:36:59 AM ) Total Marks: 1
Mutually Exclusive projects refer to what?
Select correct option:
One can invest in one of the projects and not in both
One can invest in both projects
Cash flows of the two projects are not linked to each other
Cash flows of the two projects are linked to each other
Question # 4 of 15 ( Start time: 06:37:46 AM ) Total Marks: 1
Which of the following is not the present value of the bond?
Select correct option:
Intrinsic value
Market price
Fair price
Theoretical price
Question # 5 of 15 ( Start time: 06:38:26 AM ) Total Marks: 1
When the zero coupon bond approaches to its maturity, the market value of the bond approaches to which of the following?
Select correct option:
Intrinsic value
Book value
Par value
Historic cost
Question # 6 of 15 ( Start time: 06:38:53 AM ) Total Marks: 1
Who or what is a person or institution designated by a bond issuer as the official representative of the bondholders?
Select correct option:
Indenture
Debenture
Bond
Bond trustee
Question # 7 of 15 ( Start time: 06:39:25 AM ) Total Marks: 1
Which of the following is the percentage of interest charged at each compounding time?
Select correct option:
Nominal interest Rate
Effective interest Rate
Annual percentage rate
Periodic interest rate
Question # 8 of 15 ( Start time: 06:40:04 AM ) Total Marks: 1
Which of the following is/are the component(s) of working capital management?
Select correct option:
Current assets
Fixed assets
Fixed assets and long-term liabilities
Current assets and current liabilities
Question # 9 of 15 ( Start time: 06:40:28 AM ) Total Marks: 1
Which of the following refers to bringing the future cash flow to the present time?
Select correct option:
Net present value
Discounting
Opportunity cost
Internal rate of return
Question # 10 of 15 ( Start time: 06:40:55 AM ) Total Marks: 1
Which of the following is TRUE about IRR (Internal Rate of Return)?
Select correct option:
It changes for each and every year over the life of the project
It remains same for each and every year over the life of the project
It increases over the life of the project
It decreases over the life of the project
Question # 11 of 15 ( Start time: 06:41:54 AM ) Total Marks: 1
What is the present value of Rs. 3,500,000 to be paid at the end of 50 years if the correct risk adjusted interest rate is 18%?
Select correct option:
Rs.105,000
Rs.1,500,000
Rs.3975,000
Rs. 350,000
Question # 12 of 15 ( Start time: 06:42:42 AM ) Total Marks: 1
Effective interest rate is different from nominal rate of interest because:
Select correct option:
Nominal interest rate ignores compounding
Nominal interest rate includes frequency of compounding
Periodic interest rate ignores the effect of inflation
All of the given options
Question # 13 of 15 ( Start time: 06:43:40 AM ) Total Marks: 1
Which of the following refers to time value of money concept?
Select correct option:
A rupee in one’s hand at present is worth less than the rupee that one is going to receive tomorrow
A rupee in one’s hand at present is worth more than the rupee that one is going to receive tomorrow
A rupee in one’s hand at present is worth same as the rupee that one is going to receive tomorrow
All of the given options
Question # 14 of 15 ( Start time: 06:44:27 AM ) Total Marks: 1
Which of the following are known as Discretionary Financing?
Select correct option:
Current liabilities
Current assets
Fixed assets
Long-term liabilities
Question # 15 of 15 ( Start time: 06:44:58 AM ) Total Marks: 1
If Net Present Value technique is used, what is the ranking criterion for projects?
Select correct option:
Choose the highest NPV
Choose the lowest NPV
Choose the project with longest term
Choose the project with shortest term