Blog: Mgt201 Online Quiz

VUsolutions Quiz Start Time: 02:14 PM Time Left 75 sec(s) Question # 1 of 15 ( Start time: 02:14:22 PM ) Total Marks: 1 Total portfolio risk is __________. Select correct option: Equal to systematic risk plus non-diversifiable risk Equal to avoidable risk plus diversifiable risk Equal to systematic risk plus unavoidable risk Equal to systematic risk plus diversifiable risk

VUsolutions Quiz Start Time: 02:14 PM Time Left 21 sec(s) Question # 2 of 15 ( Start time: 02:15:40 PM ) Total Marks: 1 What is a dividend clientele effect assumes? Select correct option: Investors prefer higher rather than lower dividends Shareholders are indifferent regarding dividends Investors have specific dividend preferences Investors are making "homemade" dividends

VUsolutions Quiz Start Time: 02:14 PM Time Left 61 sec(s) Question # 3 of 15 ( Start time: 02:17:09 PM ) Total Marks: 1 Which of the following is the stability of a firm's operating income? Select correct option: Financial leverageFINANCIAL LEAVERAGE Weighted-average cost of capital Capital structure Business risk

VUsolutions Quiz Start Time: 02:14 PM Time Left 66 sec(s) Question # 4 of 15 ( Start time: 02:18:05 PM ) Total Marks: 1 Which of the following market in finance is referred to the market for short-term government and corporate debt securities? Select correct option: Money market CORRECT Capital market Primary market Secondary market

VUsolutions Quiz Start Time: 02:14 PM Time Left 82 sec(s) Question # 5 of 15 ( Start time: 02:18:57 PM ) Total Marks: 1 Which of the following formulas represents a correct calculation of the degree of operating leverage? Select correct option: (Q - QBE)/Q (EBIT) / (EBIT - FC) [Q(P-V) + FC] /[Q(P-V)] Q(P-V) / [Q(P-V) - FC]

VUsolutions Quiz Start Time: 02:14 PM Time Left 82 sec(s) Question # 6 of 15 ( Start time: 02:19:17 PM ) Total Marks: 1 What is the long-run objective of financial management? Select correct option: Maximize earnings per share Maximize the value of the firm's common stock Maximize return on investment Maximize market share

VUsolutions Quiz Start Time: 02:14 PM Time Left 82 sec(s) Question # 7 of 15 ( Start time: 02:19:44 PM ) Total Marks: 1 Which of the following costs would be considered a fixed cost? Select correct option: Raw materials Depreciation Bad-debt losses Production labor

VUsolutions Quiz Start Time: 02:14 PM Time Left 83 sec(s) Question # 8 of 15 ( Start time: 02:21:11 PM ) Total Marks: 1 Which of the following needs to be excluded while we calculate the incremental cash flows? Select correct option: Depreciation Sunk cost Opportunity cost Non-cash item

VUsolutions Quiz Start Time: 02:14 PM Time Left 50 sec(s) Question # 10 of 15 ( Start time: 02:22:21 PM ) Total Marks: 1 The statement of cash flows reports a firm's cash flows segregated into which of the following categorical order? Select correct option: Operating, investing, and financing CORRECT Investing, operating, and financing Financing, operating and investing Financing, investing, and operating

VUsolutions Quiz Start Time: 02:14 PM Time Left 76 sec(s) Question # 11 of 15 ( Start time: 02:23:34 PM ) Total Marks: 1 All of the following are the financial statements used for the purpose of reporting and analysis EXCEPT: Select correct option: Balance Sheet Income Statement Cash budget Statement of Retained Earnings

VUsolutions Quiz Start Time: 02:14 PM Time Left 50 sec(s) Question # 12 of 15 ( Start time: 02:24:01 PM ) Total Marks: 1 Which of the following is correct, if a firm has a required rate of return equal to the ROE? Select correct option: The firm can increase market price and P/E by retaining more earnings. The firm can increase market price and P/E by increasing the growth rate. The amount of earnings retained by the firm does not affect market price or the P/E. None of the given options

VUsolutions Quiz Start Time: 02:14 PM Time Left 72 sec(s) Question # 13 of 15 ( Start time: 02:25:21 PM ) Total Marks: 1 The explicit costs associated with corporate default, such as legal expenses, are the ___________ of the firm. Select correct option: Flotation costs Default beta coefficients Direct bankruptcy costs Indirect bankruptcy costs

VUsolutions Quiz Start Time: 02:14 PM Time Left 77 sec(s) Question # 14 of 15 ( Start time: 02:26:56 PM ) Total Marks: 1 The RBS pays 5.60%, compounded daily (based on 360 days), on a 9-month certificate of deposit, if you deposit Rs.20, 000 you would expect to earn around __________ in interest. Select correct option: Rs.840 Rs.858 CORRECT Rs.1,032 Rs.1,121

Quiz Start Time: 02:14 PM Time Left 69 sec(s) Question # 15 of 15 ( Start time: 02:27:42 PM ) Total Marks: 1 Which of the following refers to financial risk? Select correct option: Risk of owning equity securities Risk faced by equity holders when debt is used General business risk of the firm Possibility that interest rates will increase