💰Finance MCQs
Finance MCQs
500 MCQs1
Required rate of return in calculating bond’s cash flow is also classified as_______?
AGoing rate of return
BYield
CEarning rate
DBoth A and B
2
Right held with corporations to call issued bonds for redemption is considered as___________?
AArtificial provision
BCall provision
CRedeem provision
DOriginal provision
3
Price of an outstanding bond decreases when market rate is_______________?
AIncreased
BDecreased
CEarned
DNever changed
4
Type of bond in which payments are made on basis of inflation index is classified as_____________?
ABorrowed bond
BPurchasing power bond
CSurplus bond
DDeficit bond
5
If coupon rate is more than going rate of interest, then bond will be sold________?
AMore than its par value
BSeasoned par value
CAt par value
DBelow its par value
6
During planning period, a marginal cost for raising a new debt is classified as__________?
ADebt cost
BRelevant cost
CBorrowing cost
DEmbedded cost
7
A risk associated with project and way considered by well diversified stockholder is classified as______________?
AExpected risk
BBeta risk
CIndustry risk
DReturning risk
8
Variability for expected returns for projects is classified as___________?
AExpected risk
BStand-alone risk
CVariable risk
DReturning risk
9
Method uses for an estimation of cost of equity is classified as___________?
AMarket cash flow
BFuture cash flow method
CDiscounted cash flow method
DPresent cash flow method
10
In weighted average capital, capital structure weights estimation does not rely on value of__________?
AInvestors equity
BMarket value of equity
CBook value of equity
DStock equity