11081. Price of an outstanding bond decreases when market rate is_______________?
✅ A. Increased
Option A : Increased Option B : Decreased Option C : Earned Option D : Never changed Option E : Correct Answer : Increased Read more
Management Sciences MCQs – Page 555
11082. Right held with corporations to call issued bonds for redemption is considered as___________?
✅ B. Call provision
Option A : Artificial provision Option B : Call provision Option C : Redeem provision Option D : Original provision Option E : Correct Answer : Call provision Read more
11083. Required rate of return in calculating bonds cash flow is also classified as_______?
✅ D. Both A and B
Option A : Going rate of return Option B : Yield Option C : Earning rate Option D : Both A and B Option E : Correct Answer : Both A and B Read more
11084. If default probability is zero and bond is not called, then yield to maturity is_____________?
✅ D. Equal to expected return rate
Option A : Mature expected return rate Option B : Lower than expected return rate Option C : Higher than expected return rate Option D : Equal to expected return rate Option E : Correct Answer : Equal to expected return rate Read more
11085. Cash flows that could be generated from an owned asset by company but not use in project are classified as_________________?
✅ C. Opportunity costs
Option A : Occurred cost Option B : Mean cost Option C : Opportunity costs Option D : Weighted cost Option E : Correct Answer : Opportunity costs Read more
11086. Relevant cash flow which company expects when its will implement project is classified as_____________?
✅ C. Incremental cash flow
Option A : Irrelevant cash flow Option B : Relevant cash flow Option C : Incremental cash flow Option D : Decrease cash flow Option E : Correct Answer : Incremental cash flow Read more
11087. Nominal interest rates and nominal cash flows are usually reflected the____________?
✅ A. Inflation effects
Option A : Inflation effects Option B : Opportunity effects Option C : Equity effects Option D : Debt effects Option E : Correct Answer : Inflation effects Read more
11088. In cash flow estimation, depreciation shelters companys income from_______?
✅ C. Taxation
Option A : Expansion Option B : Salvages Option C : Taxation Option D : Discounts Option E : Correct Answer : Taxation Read more
11089. Method uses for an estimation of cost of equity is classified as___________?
✅ C. Discounted cash flow method
Option A : Market cash flow Option B : Future cash flow method Option C : Discounted cash flow method Option D : Present cash flow method Option E : Correct Answer : Discounted cash flow method Read more
11090. Variability for expected returns for projects is classified as___________?
✅ B. Stand-alone risk
Option A : Expected risk Option B : Stand-alone risk Option C : Variable risk Option D : Returning risk Option E : Correct Answer : Stand-alone risk Read more
11091. A risk associated with project and way considered by well diversified stockholder is classified as______________?
✅ B. Beta risk
Option A : Expected risk Option B : Beta risk Option C : Industry risk Option D : Returning risk Option E : Correct Answer : Beta risk Read more
11092. During planning period, a marginal cost for raising a new debt is classified as__________?
✅ B. Relevant cost
Option A : Debt cost Option B : Relevant cost Option C : Borrowing cost Option D : Embedded cost Option E : Correct Answer : Relevant cost Read more
11093. If coupon rate is more than going rate of interest, then bond will be sold________?
✅ D. Below its par value
Option A : More than its par value Option B : Seasoned par value Option C : At par value Option D : Below its par value Option E : Correct Answer : Below its par value Read more
11094. Type of bond in which payments are made on basis of inflation index is classified as_____________?
✅ B. Purchasing power bond
Option A : Borrowed bond Option B : Purchasing power bond Option C : Surplus bond Option D : Deficit bond Option E : Correct Answer : Purchasing power bond Read more
11095. Beta which is estimated as regression slope coefficient is classified as___________?
✅ A. Historical beta
Option A : Historical beta Option B : Market beta Option C : Coefficient beta Option D : Riskier beta Option E : Correct Answer : Historical beta Read more
11096. In weighted average capital, capital structure weights estimation does not rely on value of__________?
✅ C. Book value of equity
Option A : Investors equity Option B : Market value of equity Option C : Book value of equity Option D : Stock equity Option E : Correct Answer : Book value of equity Read more
11097. Set of rules consisting of behavior towards its directors, creditors, shareholders, competitors and community is considered as____________?
✅ C. Corporate governance
Option A : Agency governance Option B : Hiring governance Option C : Corporate governance Option D : External governance Option E : Correct Answer : Corporate governance Read more
11098. Price for debt is called_________?
✅ D. Interest rate
Option A : Debt rate Option B : Investment return Option C : Discount rate Option D : Interest rate Option E : Correct Answer : Interest rate Read more
11099. In financial markets, period of maturity less than one year of financial instruments is classified as________________?
✅ A. Short-term
Option A : Short-term Option B : Long-term Option C : Intermediate term Option D : None of these Option E : Correct Answer : Short-term Read more
11100. A markets which deals with long-term corporate stocks are classified as
✅ C. Capital markets
Option A : Liquid markets Option B : Short-term markets Option C : Capital markets Option D : Money markets Option E : Correct Answer : Capital markets Read more