Question # 1
Suppose you need the present value interest factor for 12 percent compounded quarterly for 10 years. If all you have is a PVIF table, you would use the ________ period row and the ________ percent rate column.
40, 12
20, 12
40, 3
20, 6
Question # 2
______ is not used to reflect worth of an asset.
Book value
Market value
Both book and market value
None of the given options
Suppose you need the present value interest factor for 12 percent compounded quarterly for 10 years. If all you have is a PVIF table, you would use the ________ period row and the ________ percent rate column.
40, 12
20, 12
40, 3
20, 6
Question # 2
______ is not used to reflect worth of an asset.
Book value
Market value
Both book and market value
None of the given options
Question # 3
Which of the following changes will increase the Net Present Value (NPV ) of a project?
A decrease in the discount rate
A decrease in the size of the cash inflows
An increase in the initial cost of the project
A decrease in the number of cash inflows
Question # 4
What will be the profitability index of a project that requires initial cash out flow of Rs. 2,500,000 and present value of all future cash inflows is Rs. 2,875,000?
1.15
1.5
1.35
0.87
Question # 5
The analysis in which comparison is made from year to year and the earliest year is taken as base is known as:
Vertical analysis
Ration analysis
Base Year analysis
None of given options
Question # 6
Since preferred stock dividends are fixed, valuing preferred stock is roughly equivalent to valuing:
A zero growth common stock.
A positive growth common stock
A short-term bond
An option.
Question # 7
Which of the following ratio depicts the level that firm utilizing its assets efficiently?
Quick ratio
Acid test ratio
Asset turnover ratio
Liquidity ratio
Question # 8
________ is a rate at which net present value of an investment is ZERO.
Nominal rate of return
Real rate of return
Internal rate of return
None of the given options
Question # 9
Virgo Airlines will pay Rs.4.00 dividend next year on its common stock, which is currently selling at Rs.100 per share. What is the market's required return on this investment if the dividend is expected to grow at 5% forever?
4 percent.
5 percent.
7 percent.
9 percent.
Question # 10
The alternative or other name used for Gordon’s Growth Model is:
Binomial models finance
Capital asset pricing model
Dividend discount model
Black schooled model finance
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