Cost of capital is equal to required return rate on equity in case if investors are only__________?

A: Valuation manager

B: Common stockholders

C: Asset seller

D: Equity dealer

Answer & Explanation Discussion
Save for Later (0)
Please login to bookmarkClose

No account yet? Register

Common stockholders

A type of beta which incorporates about company such as changes in capital structure is classified as___________?

A: Industry Beta

B: Market Beta

C: Subtracted Beta

D: Fundamental Beta

Answer & Explanation Discussion
Save for Later (0)
Please login to bookmarkClose

No account yet? Register

Fundamental Beta

Return on assets = 6.7% and equity multiplier = 2.5% then return on equity will be ______________?

A: 16.75%

B: 2.68%

C: 0.37%

D: 9.20%

Answer & Explanation Discussion
Save for Later (0)
Please login to bookmarkClose

No account yet? Register

16.75%

An uncovered cost at start of year is divided by full cash flow during recovery year then added in prior years to full recovery for calculating__________?

A: Original period

B: Investment period

C: Payback period

D: Forecasted period

Answer & Explanation Discussion
Save for Later (0)
Please login to bookmarkClose

No account yet? Register

Payback period

In capital budgeting, an internal rate of return of project is classified as its__________?

A: External rate of return

B: Internal rate of return

C: Positive rate of return

D: Negative rate of return

Answer & Explanation Discussion
Save for Later (0)
Please login to bookmarkClose

No account yet? Register

Internal rate of return

In capital budgeting, number of non-normal cash flows have internal rate of returns are____________?

A: One

B: Multiple

C: Accepted

D: Non-accepted

Answer & Explanation Discussion
Save for Later (0)
Please login to bookmarkClose

No account yet? Register

Multiple

Bond which is offered below its face value is classified as______________?

A: Present value bond

B: Original issue discount bond

C: Coupon issued bond

D: Discounted bond

Answer & Explanation Discussion
Save for Later (0)
Please login to bookmarkClose

No account yet? Register

Original issue discount bond

Redemption option which protects investors against rise in interest rate is considered as________?

A: Redeemable at deferred

B: Redeemable at par

C: Redeemable at refund

D: Redeemable at finding

Answer & Explanation Discussion
Save for Later (0)
Please login to bookmarkClose

No account yet? Register

Redeemable at par

Cash flows that should be considered for decision in hand are classified as____________?

A: Relevant cash flows

B: Irrelevant cash flows

C: Marginal cash flows

D: Transaction cash flows

Answer & Explanation Discussion
Save for Later (0)
Please login to bookmarkClose

No account yet? Register

Relevant cash flows

An investor who writes stock call options in his own portfolio is classified as__________?

A: Due option

B: Covered option

C: Undue option

D: Uncovered option

Answer & Explanation Discussion
Save for Later (0)
Please login to bookmarkClose

No account yet? Register

Covered option

1 2 3 4 43