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

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 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

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