A. Bond Price coupon rate
B. Bond Price > Par Value and YTM > coupon rate
C. Bond Price > Par Value and YTM
Finance Mcqs
Which of the following is known as the group of assets such as stocks and bonds held by an investor ?
A. Stock Bundle
B. Portfolio
C. Capital Structure
D.. None of the given options
Which of the following is the overall return the firm must earn on its existing assets to maintain the value of the stock?
A. IRR (Internal Rate of Return)
B. MIRR (Modified Internal Rate of Return)
C. WACC (Weighted Average Cost of Capital)
D. AAR (Average Accounting Return)
A series of constant cash flows that occur at the end of each period for some fixed number of periods is ………… .
A. an ordinary annuity
B. annuity due
C. multiple cash flows
D. perpetuity
The DuPont Identity tells us that Return on Equity is affected by:
A. The DuPont Identity tells us that Return on Equity is affected by:
B. asset use efficiency (as measured by total assets turnover)
C. financial Leverage (as measured by equity multiplier)
D. all of the given options (a, b and c)
A standardized financial statement presenting all items of the statement as a percentage of total is:
A. a common-size statement
B. an income statemen
C. a cash flow statement
D. a balance sheet
Which of the following is the process of planning and managing a firm‟s long-term investments?
A. Capital Structuring
B. Capital Rationing
C. Capital Budgeting
D. Working Capital Management
The principal amount of a bond at issue is called…………?
A. Par value
B. Coupon value
C. Present value of an annuity
D. Present value of a lump sum
The difference between current assets and current liabilities is known as…………?
A. Surplus Asset
B. Short-term Ratio
C. Working Capital
D. Current Ratio
Which of the following equation is known as Cash Flow (CF) identity?
A. CF from Assets = CF to Creditors – CF to Stockholder
B. CF from Assets = CF to Stockholders – CF to Creditors
C. CF to Stockholders = CF to Creditors + CF from Assets
D. CF from Assets = CF to Creditors + CF to Stockholder