11
Which is a payment of additional shares to shareholders in lieu of cash?
A)
Stock split
B)
Stock dividend
C)
Extra dividend
D)
Regular dividend
Answer & Solution
Answer: Option
B
12
The cost debt financing is generally . . . . . . . . the cost preferred or common equity financing.
A)
less than
B)
equal to
C)
more than
D)
None of the above
Answer & Solution
Answer: Option
A
13
The point of tangency between risk return indifferences curves and efficient frontier highlights.
A)
Optimal portfolio
B)
Efficient portfolio
C)
Sub-optimal portfolio
D)
None of the above
Answer & Solution
Answer: Option
A
14
Which of the following is not the internal factor affecting the weighted average cost of capital of a firm?
A)
Investment policy of the firm
B)
Capital structure of the firm
C)
Dividend policy followed
D)
Market risk premium for the firm
Answer & Solution
Answer: Option
D
15
Loans to limited companies
A)
Have a fixed term and receive interest allowable for corporation tax, but have no voting rights
B)
Do not have a fixed term, but receive interest allowable for corporation tax and have voting rights
C)
Do not have a fixed term and receive interest allowable for corporation tax, but have no voting rights
D)
Have a fixed term and receive interest not allowable for corporation tax, but have no voting rights
Answer & Solution
Answer: Option
A
16
Which of the following can be defined as different stages of Working Capital Operating Cycle?
A)
Raw material, stock in process, finished goods, sundry debtors
B)
Stock in process, raw material, finished goods, sundry debtors
C)
Raw material, finished goods, stock in process, sundry debtors
D)
Raw material, stock in process, sundry debtors, finished goods
Answer & Solution
Answer: Option
A
17
Which is not the long-term source of working capital?
A)
Retained earnings
B)
Long-term debts
C)
Issue of shares
D)
Provision for taxation
Answer & Solution
Answer: Option
D
18
The three different types of forex transactions are
A)
spot, forward, swaps
B)
spot, cash, DTC
C)
spot, forwards, futures
D)
spot, futures, options
Answer & Solution
Answer: Option
A
19
A company can improve (lower) its debts to total assets ratio by doing which of the following?
A)
Borrow more
B)
Sell common stock
C)
Shift short-term to long-term debts
D)
Shift long-term to short-term debts
Answer & Solution
Answer: Option
B
20
Which of the following is not a method for calculating or ascertaining the amount of purchase consideration?
A)
Net Payment Method
B)
Net Assets Method
C)
Gross Receipts Method
D)
Share Exchange Method
Answer & Solution
Answer: Option
C
