Blog: Fin622 Solved current Online Quiz

Question # 1 of 10 ( Start time: 10:00:21 PM ) Total Marks: 1

Since preferred stock dividends are fixed, valuing preferred stock is roughly equivalent to valuing:

Select correct option:

A zero growth common stock. (CORRECT)

A positive growth common stock

A short-term bond

An option.

If you deposit $12,000 per year for 16 years (each deposit is made at the beginning of each year) in an account that pays an annual interest rate of 15%, 

what will your account be worth at the end of 16 years?

Select correct option:

$82,168.44

$71,450.82

$768,901.12 (CORRECT)

$668,609.67

Question # 3 of 10 ( Start time: 10:02:17 PM ) Total Marks: 1

The present value of Rs.5,000 received at the end of 5 years, discounted at 10 percent, is closest to:

Select correct option:

Rs.3,105. (CORRECT)

Rs.823.

Rs.620.

Rs.3,403.

Question # 4 of 10 ( Start time: 10:02:50 PM ) Total Marks: 1

Which of the following stock would provide a regular income to the investors?

Select correct option:

Growth stock

Income stock (CORRECT)

Aggressive stock

Defensive stock

Question # 5 of 10 ( Start time: 10:03:33 PM ) Total Marks: 1

You have calculated that the required rate of return on a particular common stock is less than the expected rate of return. Therefore, you would conclude:

Select correct option:

That the stock is more risky than the market portfolio. (CORRECT)

That an investor should buy the stock.

That the stock has a high dividend payout ratio.

That an investor should sell the stock.

Question # 6 of 10 ( Start time: 10:04:28 PM ) Total Marks: 1

If an investor buys a non-zero coupon bond and holds it to maturity, then the rate of return she will receive depends on:

Select correct option:

The bond's maturity value.

The price paid for the bond

The interest payments to be received.

All of the given options (CORRECT)

Question # 7 of 10 ( Start time: 10:05:31 PM ) Total Marks: 1

Which of the following is a long-term source of financing for a firm?

Select correct option:

Corporate Bonds (CORRECT)

Money Market instruments

Trade credit

Accounts Payables

Question # 8 of 10 ( Start time: 10:06:17 PM ) Total Marks: 1

Which of the following option is related to primary financial market?

Select correct option:

Selling old shares

Initial Public Offering (CORRECT)

Buying Mutual Funds Certificates

Buying Bonds issued in previous year

Question # 9 of 10 ( Start time: 10:07:20 PM ) Total Marks: 1

If a creditor wanted to know if a potential customer paid its bills on time, the creditor could look at the potential customer's:

Select correct option:

Current ratio.

Acid ratio.

Average age of accounts payable. (CORRECT)

Average age of accounts receivable

Which of the following technique of stock evaluation considers quantitative factors as well as qualitative factors for valuation?

Select correct option:

Technical Analysis

Fundamental Analysis (CORRECT)

Constant Growth Model

No Growth Model