MCQOPTIONS
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MCQOPTIONS
This section includes 183 Mcqs, each offering curated multiple-choice questions to sharpen your Business knowledge and support exam preparation. Choose a topic below to get started.
| 101. |
Current value of portfolio is $550 and to cover an obligation of call option is $200 then value of stock would be |
| A. | 350 |
| B. | 0.0275 |
| C. | 750 |
| D. | 2.75 times |
| Answer» D. 2.75 times | |
| 102. |
Difference between bonds yield and any other security yield having same maturities is considered as |
| A. | Maturity spread |
| B. | Bond spread |
| C. | Yield spread |
| D. | Interest spread |
| Answer» B. Bond spread | |
| 103. |
Dividend per share is $15 and sell it for $120 and floatation cost is $3.0 then component cost of preferred stock will be |
| A. | 12.82 times |
| B. | 0.1282 times |
| C. | 0.1282 |
| D. | 12.82 |
| Answer» D. 12.82 | |
| 104. |
Dividend per share is $18 and sell it for $122 and floatation cost is $4 then component cost of preferred stock will be |
| A. | 0.1525 |
| B. | 0.1525 times |
| C. | 15.25 |
| D. | 0.001525 |
| Answer» B. 0.1525 times | |
| 105. |
Dividend yield is 25% and current price is $40 then dividend yield will be |
| A. | 0.65 |
| B. | 10 |
| C. | 65 |
| D. | 15 |
| Answer» C. 65 | |
| 106. |
Cost of money is affected by factors which include |
| A. | Production opportunities |
| B. | Risk |
| C. | Public offering |
| D. | Inflation |
| Answer» B. Risk | |
| 107. |
Cash flow which starts negative then positive then again positive cash flow is classified as |
| A. | Normal costs |
| B. | Non-normal costs |
| C. | Non-normal cash flow |
| D. | Normal cash flow |
| Answer» B. Non-normal costs | |
| 108. |
Bonds that have high liquidity premium usually have |
| A. | Inflated trading |
| B. | Default free trading |
| C. | Less frequently traded |
| D. | Frequently traded |
| Answer» B. Default free trading | |
| 109. |
Bonds which are more riskier than corporate bonds and are issued by major corporations are classified as |
| A. | Common stocks |
| B. | Corporate stocks |
| C. | Leases |
| D. | Preferred stocks |
| Answer» B. Corporate stocks | |
| 110. |
Capital gain is $3 and capital gains yield is 6% then beginning price will be |
| A. | 18 |
| B. | 0.18 times |
| C. | 50 |
| D. | 0.5 |
| Answer» B. 0.18 times | |
| 111. |
Bond risk premium is added in to bond yield to calculate |
| A. | Cost of American option |
| B. | Cost of European option |
| C. | Cost of common stock |
| D. | Cost of preferred stock |
| Answer» B. Cost of European option | |
| 112. |
An uncovered cost at start of year is $300, full cash flow during recovery year is $650 and prior years to full recovery is 4 then payback would be |
| A. | 3.46 years |
| B. | 2.46 years |
| C. | 5.46 years |
| D. | 4.46 years |
| Answer» B. 2.46 years | |
| 113. |
An unlimited liability for business debts and less capital for growth are limitations of |
| A. | Proprietorship |
| B. | Personal business |
| C. | Private corporation |
| D. | Personal ownership |
| Answer» B. Personal business | |
| 114. |
An unlimited liability is classified as liabilities of the |
| A. | Limited partners |
| B. | General partners |
| C. | Venture partners |
| D. | Corporate partners |
| Answer» B. General partners | |
| 115. |
An usage of proceeds of new issue to retire issue with high-rate is classified as |
| A. | Refunding operation |
| B. | Funding operation |
| C. | Proceeds operation |
| D. | Deferred operation |
| Answer» B. Funding operation | |
| 116. |
Beginning price is $25 and capital gains yield is 5% then capital gain would be |
| A. | 50 |
| B. | 1.25 |
| C. | 50 times |
| D. | 23.75 |
| Answer» C. 50 times | |
| 117. |
An investment outlay cash flow is $2000, an operating cash flow is $1500 and salvage cash flow is $3000 then free cash flow would be |
| A. | 500 |
| B. | 2500 |
| C. | 0.065 |
| D. | 6500 |
| Answer» E. | |
| 118. |
An investment outlay cash flow is $4000, operating cash flow is $1000 and salvage cash flow is $5000 then free cash flow would be |
| A. | 10000 |
| B. | 8000 |
| C. | Zero |
| D. | 4000 |
| Answer» B. 8000 | |
| 119. |
An equity multiplier is multiplied to return on assets to calculate |
| A. | Return on assets |
| B. | Return on multiplier |
| C. | Return on turnover |
| D. | Return on stock |
| Answer» B. Return on multiplier | |
| 120. |
An increase in interest rate leads to decline in value of |
| A. | Junk bonds |
| B. | Outstanding bonds |
| C. | Standing bonds |
| D. | Premium bonds |
| Answer» B. Outstanding bonds | |
| 121. |
An inflation rate included in bonds interest rate is one which is inflation rate |
| A. | At bond issuance |
| B. | Expected in future |
| C. | Expected at time of maturity |
| D. | Expected at deferred call |
| Answer» B. Expected in future | |
| 122. |
An initial cost is $6000 and probability index is 5.6 then present value of cash flows will be |
| A. | 25000 |
| B. | 28000 |
| C. | 33600 |
| D. | 30000 |
| Answer» D. 30000 | |
| 123. |
An interest rate is 5%, number of period are 3, and present value is $100, then future value will be |
| A. | 115.76 |
| B. | 105 |
| C. | 110.25 |
| D. | 113.56 |
| Answer» B. 105 | |
| 124. |
An expected final stock price is $45 and an original investment is $25 then an expected capital gain will be |
| A. | 75 |
| B. | ?$75 |
| C. | ?$20 |
| D. | 20 |
| Answer» E. | |
| 125. |
An expected final stock price is $70 and an expected capital gain is $25 then an original investment would be |
| A. | 45 |
| B. | ?$45 |
| C. | 95 |
| D. | ?$95 |
| Answer» D. ?$95 | |
| 126. |
An equation in which total assets are multiplied to profit margin is classified as |
| A. | Du DuPont equation |
| B. | Turnover equation |
| C. | Preference equation |
| D. | Common equation |
| Answer» B. Turnover equation | |
| 127. |
An operating cash flows is $12000 and gross fixed asset expenditure is $5000 then free cash flow will be |
| A. | ?$7000 |
| B. | 7000 |
| C. | 17000 |
| D. | ?$17000 |
| Answer» C. 17000 | |
| 128. |
An original investment is $30 and an expected capital gain is $10 then an expected final stock price will be |
| A. | 20 |
| B. | 40 |
| C. | ?$40 |
| D. | ?$20 |
| Answer» C. ?$40 | |
| 129. |
An uncovered cost at start of year is $200, full cash flow during recovery year is $400 and prior years to full recovery is 3 then payback would be |
| A. | 5 years |
| B. | 3.5 years |
| C. | 4 years |
| D. | 4.5 years |
| Answer» B. 3.5 years | |
| 130. |
Bonds issue by corporations which are more riskier than preferred stocks are classified as |
| A. | Leases |
| B. | Preferred stocks |
| C. | Common stocks |
| D. | Corporate stocks |
| Answer» B. Preferred stocks | |
| 131. |
Case in which average investors risk aversion is greater then slope of line and risk premium respectively is |
| A. | Steeper, greater |
| B. | Steeper, smaller |
| C. | Steeper, zero |
| D. | Both A and B |
| Answer» B. Steeper, smaller | |
| 132. |
Chance of happening any unfavorable event in near future is classified as |
| A. | Chance |
| B. | Event happening |
| C. | Probability |
| D. | Risk |
| Answer» B. Event happening | |
| 133. |
Current option is $700 and current value of stock in portfolio is $1400 then present value of portfolio will be |
| A. | ?$700 |
| B. | 2100 |
| C. | 700 |
| D. | 0.02 |
| Answer» B. 2100 | |
| 134. |
Current option is $800 and current value of stock in portfolio is $1900 then present value of portfolio would be |
| A. | ?$1100 |
| B. | 2700 |
| C. | 1100 |
| D. | ?$2700 |
| Answer» D. ?$2700 | |
| 135. |
Current price is $40 and dividend paid is $10 then dividend yield will be |
| A. | 25 |
| B. | 0.25 |
| C. | 4 |
| D. | 0.04 |
| Answer» C. 4 | |
| 136. |
Free cash flow is $12000, an operating cash flow is $4000, an investment outlay cash flow is $5000 then salvage cash flow would be |
| A. | ?$21000 |
| B. | 21000 |
| C. | ?$3000 |
| D. | 3000 |
| Answer» B. 21000 | |
| 137. |
For investors, more steeper slope of indifference curve shows more |
| A. | Risk averse investor |
| B. | Risk taker investor |
| C. | In differential investor |
| D. | Ineffective investment |
| Answer» B. Risk taker investor | |
| 138. |
Future value of annuity FVA (due) is, if deposited value is $100 and earn 5% every year of total three years will be |
| A. | 99.4875 dollars |
| B. | 318.25 dollars |
| C. | 315.25 dollars |
| D. | 331.0125 dollars |
| Answer» B. 318.25 dollars | |
| 139. |
Future value of annuity FVA (ordinary) is, if deposited value is $100 and earn 5% every year of total three years will be |
| A. | 315.25 dollars |
| B. | 331.0125 dollars |
| C. | 99.4875 dollars |
| D. | 318.25 dollars |
| Answer» B. 331.0125 dollars | |
| 140. |
In option pricing, an increasing in option price is due to |
| A. | Time of expiry increases |
| B. | Time of expiry decreases |
| C. | Exchange time increases |
| D. | Exchange time decreases |
| Answer» B. Time of expiry decreases | |
| 141. |
In put call parity relationship, put option minus call option in addition with stock is equal to |
| A. | Exercise price present value |
| B. | Exercise price future value |
| C. | Time line value |
| D. | Time value of bond |
| Answer» B. Exercise price future value | |
| 142. |
In market analysis, market multiple is multiplied by firm earnings before interest, taxes, depreciation and amortization to calculate |
| A. | Market total value |
| B. | Firm total value |
| C. | Industry value |
| D. | Taxes value |
| Answer» B. Firm total value | |
| 143. |
In retention growth model, percent of net income firms usually pay out as shareholders dividends, is classified as |
| A. | Payout ratio |
| B. | Payback ratio |
| C. | Growth retention ratio |
| D. | Present value of ratio |
| Answer» B. Payback ratio | |
| 144. |
Markets in which corporations raise capital for creating market transaction, are classified as |
| A. | Commercial markets |
| B. | Residential markets |
| C. | Primary markets |
| D. | Consumer credit loans |
| Answer» B. Residential markets | |
| 145. |
Markets which deal with high liquid and short term debt securities are classified as |
| A. | Capital markets |
| B. | Money markets |
| C. | Liquid markets |
| D. | Short-term markets |
| Answer» B. Money markets | |
| 146. |
Net income and depreciation is $313,650,000 and common shares outstanding are 55,000,000 then cash flow per share would be |
| A. | 5.7 |
| B. | 6.7 |
| C. | 7.7 |
| D. | 8.7 |
| Answer» B. 6.7 | |
| 147. |
Net income available to stockholders is $125 and total assets are $1,096 then return on common equity would be |
| A. | 0.00114 |
| B. | 0.114 |
| C. | 0.12 times |
| D. | 0.12 |
| Answer» C. 0.12 times | |
| 148. |
Net income is $2250 and noncash charges are $1150 then net cash flow would be |
| A. | 1100 |
| B. | 3400 |
| C. | 2200 |
| D. | 3500 |
| Answer» B. 3400 | |
| 149. |
Net investment in operating capital is $5000 and net operating profit after taxes is $8000 then free cash flow would be |
| A. | 13000 |
| B. | ?$3000 |
| C. | 3000 |
| D. | ?$13000 |
| Answer» D. ?$13000 | |
| 150. |
Net investment in operating capital is $7000 and net operating profit after taxes is $11,000 then free cash flow will be |
| A. | ?$18000 |
| B. | 18000 |
| C. | ?$4000 |
| D. | 4000 |
| Answer» B. 18000 | |