Category: Finance Mcqs
In capital budgeting, a negative net present value result in______________?
A. Zero economic value added
B. Percent economic value added
C. Negative economic value added
D. Positive economic value added
Notes, mortgages, bonds, stocks, treasury bills and consumer loans are classified as______________?
A. Financial instruments
B. Capital assets
C. Primary assets
D. Competitive instruments
Life that maximizes net present value of an asset is classified as__________?
A. Minimum life
B. Present value life
C. Economic life
D. Transaction life
In weighted average capital, capital structure weights estimation does not rely on value of__________?
A. Investors equity
B. Market value of equity
C. Book value of equity
D. Stock equity
Cash inflows are revenues of project and are represented by__________?
A. Hurdle number
B. Relative number
C. Negative numbers
D. Positive numbers
Set of projects or set of investments usually maximize firm value is classified as_________?
A. Optimal capital budget
B. Minimum capital budget
C. Maximum capital budget
D. Greater capital budget
When the stock market is rising it is called__________?
A. Booming
B. Bullish
C. Upward tendency
D. Hawkish
Real risk-free interest rate in addition with an inflation premium is equal to_____________?
A. Required interest rate
B. Quoted risk-free interest rate
C. Liquidity risk-free interest rate
D. Premium risk-free interest rate
Which of the following terms refers to the use of debt financing?
A. Operating Leverage
B. Financial Leverage
C. Manufacturing Leverage
D. None of the given options
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