Mgt201 Financial Managment Online Quiz 3
Tuesday, February 02, 2010 Posted In FM , MGT Edit ThisQuestion # 1 of 10
Which of the following costs would be considered a fixed cost?
Select correct option:
Raw materials
Depreciation
Bad-debt losses
Production labor
Select correct option:
Raw materials
Depreciation
Bad-debt losses
Production labor
Question # 2 of 10
Expected Portfolio Return = ___________.
Select correct option:
rP * = xA rA + xB rB
rP * = xA rA - xB rB
rP * = xA rA / xB rB
rP * = xA rA * xB rB
Question # 3 of 10
Why markets and market returns fluctuate?
Select correct option:
Because of political factors
Because of social factors
Because of socio-political factors
Because of macro systematic factors
Question # 4 of 10
Which of the following can be used to calculate the risk of the larger portfolio?
Select correct option:
Standard deviation
EPS approach
Matrix approach
Gordon’s Approach
Question # 5 of 10
Which of the following market in finance is referred to the market for short-term government and corporate debt securities?
Select correct option:
Money market
Capital market
Primary market
Secondary market
Question # 6 of 10
Which of the following would be considered a cash-flow item from an "operating" activity?
Select correct option:
Cash outflow to the government for taxes
Cash outflow to shareholders as dividends
Cash inflow to the firm from selling new common equity shares
Cash outflow to purchase bonds issued by another company
Question # 8 of 10
A 5-year annuity due has periodic cash flows of Rs.100 each year. If the interest rate is 8 percent, the present value of this annuity is closest to which of the following equations?
Select correct option:
(Rs.100)(PVIFA at 8% for 4 periods) + Rs.100
(Rs.100)(PVIFA at 8% for 4 periods)(1.08)
(Rs.100)(PVIFA at 8% for 6 periods) - Rs.100
Can not be found from the given information
Question # 9 of 10
Which of the following is correct regarding the opportunity cost of capital for a project?
Select correct option:
The opportunity cost of capital is the return that investors give up by investing in the project rather than in securities of equivalent risk.
Financial managers use the capital asset pricing model to estimate the opportunity cost of capital
The company cost of capital is the expected rate of return demanded by investors in a company
All of the given options
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