Fin622 Solved current Online Quiz
Thursday, October 27, 2011 Posted In Fin Edit ThisQuestion # 1 of 10 ( Start time: 10:00:21 PM ) Total Marks: 1
Since preferred stock dividends are fixed, valuing preferred stock is roughly equivalent to valuing:
Select correct option:
A zero growth common stock. (CORRECT)
A positive growth common stock
A short-term bond
An option.
If you deposit $12,000 per year for 16 years (each deposit is made at the beginning of each year) in an account that pays an annual interest rate of 15%,
what will your account be worth at the end of 16 years?
Select correct option:
$82,168.44
$71,450.82
$768,901.12 (CORRECT)
$668,609.67
Question # 3 of 10 ( Start time: 10:02:17 PM ) Total Marks: 1
The present value of Rs.5,000 received at the end of 5 years, discounted at 10 percent, is closest to:
Select correct option:
Rs.3,105. (CORRECT)
Rs.823.
Rs.620.
Rs.3,403.
Question # 4 of 10 ( Start time: 10:02:50 PM ) Total Marks: 1
Which of the following stock would provide a regular income to the investors?
Select correct option:
Growth stock
Income stock (CORRECT)
Aggressive stock
Defensive stock
Question # 5 of 10 ( Start time: 10:03:33 PM ) Total Marks: 1
You have calculated that the required rate of return on a particular common stock is less than the expected rate of return. Therefore, you would conclude:
Select correct option:
That the stock is more risky than the market portfolio. (CORRECT)
That an investor should buy the stock.
That the stock has a high dividend payout ratio.
That an investor should sell the stock.
Question # 6 of 10 ( Start time: 10:04:28 PM ) Total Marks: 1
If an investor buys a non-zero coupon bond and holds it to maturity, then the rate of return she will receive depends on:
Select correct option:
The bond's maturity value.
The price paid for the bond
The interest payments to be received.
All of the given options (CORRECT)
Question # 7 of 10 ( Start time: 10:05:31 PM ) Total Marks: 1
Which of the following is a long-term source of financing for a firm?
Select correct option:
Corporate Bonds (CORRECT)
Money Market instruments
Trade credit
Accounts Payables
Question # 8 of 10 ( Start time: 10:06:17 PM ) Total Marks: 1
Which of the following option is related to primary financial market?
Select correct option:
Selling old shares
Initial Public Offering (CORRECT)
Buying Mutual Funds Certificates
Buying Bonds issued in previous year
Question # 9 of 10 ( Start time: 10:07:20 PM ) Total Marks: 1
If a creditor wanted to know if a potential customer paid its bills on time, the creditor could look at the potential customer's:
Select correct option:
Current ratio.
Acid ratio.
Average age of accounts payable. (CORRECT)
Average age of accounts receivable
Which of the following technique of stock evaluation considers quantitative factors as well as qualitative factors for valuation?
Select correct option:
Technical Analysis
Fundamental Analysis (CORRECT)
Constant Growth Model
No Growth Model
