12701. Real rate expected cash flows and nominal rate expected cash flows must be______________?
✅ B. Equal
Option A : Accelerated Option B : Equal Option C : Different Option D : Inflated Option E : Correct Answer : Equal Read more
Management Sciences MCQs – Page 636
12702. Double declining balance method and sum of years digits are included in__________?
✅ D. Accelerated methods
Option A : Yearly method Option B : Single methods Option C : Double methods Option D : Accelerated methods Option E : Correct Answer : Accelerated methods Read more
12703. Interest rates, tax rates and market risk premium are factors which an/a_____________?
✅ D. Firm cannot control
Option A : Industry cannot control Option B : Industry cannot control Option C : Firm must control Option D : Firm cannot control Option E : Correct Answer : Firm cannot control Read more
12704. In retention growth model, payout ratio is subtracted from one to calculate___________?
✅ C. Retention ratio
Option A : Present value ratio Option B : Future value ratio Option C : Retention ratio Option D : Growth ratio Option E : Correct Answer : Retention ratio Read more
12705. Real interest rate and real cash flows do not include_____________?
✅ C. Inflation effects
Option A : Equity effects Option B : Debt effects Option C : Inflation effects Option D : Opportunity effects Option E : Correct Answer : Inflation effects Read more
12706. Weighted average cost of debt, preferred stock and common equity is classified as_____________?
✅ D. Cost of capital
Option A : Cost of salvage Option B : Cost of interest Option C : Cost of taxation Option D : Cost of capital Option E : Correct Answer : Cost of capital Read more
12707. In cash flow estimation and risk analysis, real rate will be equal to nominal rate if there is__________?
✅ A. No inflation
Option A : No inflation Option B : High inflation Option C : No transactions Option D : No acceleration Option E : Correct Answer : No inflation Read more
12708. Rate of return which is required to satisfy stockholders and debt holders is classified as__________?
✅ B. Weighted average cost of capital
Option A : Weighted average cost of interest Option B : Weighted average cost of capital Option C : Weighted average salvage value Option D : Mean cost of capital Option E : Correct Answer : Weighted average cost of capital Read more
12709. In cash flow estimation, depreciation is considered as________________?
✅ B. Non cash charge
Option A : Cash charge Option B : Non cash charge Option C : Cash flow discounts Option D : Net salvage discount Option E : Correct Answer : Non cash charge Read more
12710. Net investment in operating capital is subtracted from net operating profit after taxes to calculate___________?
✅ B. Free cash flow
Option A : Relevant inflows Option B : Free cash flow Option C : Relevant outflows Option D : Cash outlay Option E : Correct Answer : Free cash flow Read more
12711. 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
12712. 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
12713. 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
12714. 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
12715. 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
12716. 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
12717. 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
12718. 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
12719. 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
12720. 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