Sum of discounted cash flows is best defined as____________?

A: Technical equity

B: Defined future value

C: Project net present value

D: Equity net present value

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Project net present value

If net present value is positive, then profitability index will be__________?

A: Greater than two

B: Equal to

C: Less than one

D: Greater than one

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Greater than one

Cash flows occurring with more than one change in sign of cash flow are classified as________?

A: Non-normal cash flow

B: Normal cash flow

C: Normal costs

D: Non-normal costs

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Non-normal costs

Situation in which firm limits expenditures on capital is classified as________?

A: Optimal rationing

B: Capital rationing

C: Marginal rationing

D: Transaction rationing

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Capital rationing

Bonds issued by small companies tend to have_____________?

A: High liquidity premium

B: High inflation premium

C: High default premium

D: High yield premium

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High liquidity premium

Value generally promises to pay at maturity date and a firm borrows is considered as bonds__________?

A: Bond value

B: Per value

C: State value

D: Par value

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Par value

Bonds issued by government and backed by Pak government are classified as_________?

A: Issued security

B: Treasury bonds

C: U.S bonds

D: Return security

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Treasury bonds

An increasing in interest rate leads to decline in value of__________?

A: Junk bonds

B: Outstanding bonds

C: Standing bonds

D: Premium bonds

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Outstanding bonds

Coupon rate of bond is also called____________?

A: Nominal rate

B: Premium rate

C: Quoted rate

D: Both a and c

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Both a and c

Bond that has been issued in very recent timing is classified as_______?

A: Mature issue

B: Earning issue

C: New issue

D: Recent issue

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New issue

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