Finance MCQs
Finance MCQs Test Preparation | Latest 2021 Quiz FPSC, NTS, KPPSC, PPSC, SPSC, BPSC, OTS, UTS, PTS, CTS, ATS, ETEA MCQs Test Questions.
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
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
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
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
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
Relevant cash flows
Project which is started by firm for increasing sales is classified as______________?
A: New expansion project
B: Old expanded project
C: Firm borrowing project
D: Product line selection
New expansion project
Cost which has occurred already and not affected by decisions is classified as______________?
A: Sunk cost
B: Occurred cost
C: Weighted cost
D: Mean cost
Sunk cost
Cost of common stock is 16% and bond yield is 9% then bond risk premium would be_________?
A: 7%
B: 8%
C: 1.78%
D: 25%
7%
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
Common stockholders
In financial planning, most high option price will lead to__________?
A: Longer option period
B: Smaller option period
C: Lesser price
D: Higher price
Longer option period