According to Black Scholes model, stocks with call option pays the__________?

A: Dividends

B: No dividends

C: Current price

D: Past price

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No dividends

A type of beta which incorporates about company such as changes in capital structure is classified as___________?

A: Industry Beta

B: Market Beta

C: Subtracted Beta

D: Fundamental Beta

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Fundamental Beta

Return on assets = 6.7% and equity multiplier = 2.5% then return on equity will be ______________?

A: 16.75%

B: 2.68%

C: 0.37%

D: 9.20%

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16.75%

An uncovered cost at start of year is divided by full cash flow during recovery year then added in prior years to full recovery for calculating__________?

A: Original period

B: Investment period

C: Payback period

D: Forecasted period

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Payback period

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

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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

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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

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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

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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

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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

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New expansion project

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