Mgt201 Latest Online Quiz
Tuesday, January 18, 2011 Posted In MGT Edit This
Question # 1 of 15 ( Start time: 01:09:51 AM ) Total Marks: 1
In which of the following approach you need to bring all the projects to the same length in time?
Select correct option:
MIRR approach
Going concern approach
Common life approach
Equivalent annual approach
Question # 2 of 15 ( Start time: 01:10:53 AM ) Total Marks: 1
Which of the following is not the present value of the bond?
Select correct option:
Intrinsic value
Market price
Fair price
Theoretical price
Question # 3 of 15 ( Start time: 01:12:15 AM ) Total Marks: 1
Consider two bonds, A and B. Both bonds presently are selling at their par value of Rs. 1,000. Each pays interest of Rs. 120 annually. Bond A will mature in 5 years while bond B will mature in 6 years. If the yields to maturity on the two bonds change from 12% to 10%, ____________.
Select correct option:
Both bonds will increase in value, but bond A will increase more than bond B
Both bonds will increase in value, but bond B will increase more than bond A
Both bonds will decrease in value, but bond A will decrease more than bond B
Both bonds will decrease in value, but bond B will decrease more than bond A
Question # 4 of 15 ( Start time: 01:13:26 AM ) Total Marks: 1
Effective interest rate is different from nominal rate of interest because:
Select correct option:
Nominal interest rate ignores compounding
Nominal interest rate includes frequency of compounding
Periodic interest rate ignores the effect of inflation
All of the given options
Question # 5 of 15 ( Start time: 01:14:32 AM ) Total Marks: 1
For Company A, plow back ratio is 30%. What will be its Pay-out ratio?
Select correct option:
3.33%
30%
31%
70%
Question # 6 of 15 ( Start time: 01:15:27 AM ) Total Marks: 1
What is the most important criteria in capital budgeting?
Select correct option:
Return on investment
Profitability index
Net present value
Pay back period
Question # 7 of 15 ( Start time: 01:16:11 AM ) Total Marks: 1
Which of the following formulas represents a correct calculation of the degree of operating leverage?
Select correct option:
(Q - QBE)/Q
(EBIT) / (EBIT - FC)
[Q(P-V) + FC] /[Q(P-V)]
Q(P-V) / [Q(P-V) - FC]
Question # 8 of 15 ( Start time: 01:17:09 AM ) Total Marks: 1
Which of the following is NOT an example of a financial intermediary?
Select correct option:
Wisconsin S&L, a savings and loan association
Strong Capital Appreciation, a mutual fund
Microsoft Corporation, a software firm
College Credit, a credit union
Question # 9 of 15 ( Start time: 01:17:42 AM ) Total Marks: 1
What are the Indirect securities?
Select correct option:
The securities whose value depends on the cash flows generated by the underlying assets
The securities whose value depends on the value of the underlying assets
The securities that indirectly generate returns for its investors
All of the given options
Question # 10 of 15 ( Start time: 01:18:36 AM ) Total Marks: 1
When Investors want high plowback ratios?
Select correct option:
Whenever ROE > k
Whenever k > ROE
Only when they are in low tax brackets
Whenever bank interest rates are high
Question # 11 of 15 ( Start time: 01:19:28 AM ) Total Marks: 1
According to timing difference problem a good project might suffer from _____ IRR even though its NPV is ________.
Select correct option:
Higher; lower
Lower; Lower
Lower; higher
Higher; higher
Question # 12 of 15 ( Start time: 01:20:19 AM ) Total Marks: 1
The statement of cash flows reports a firm's cash flows segregated into which of the following categorical order?
Select correct option:
Operating, investing, and financing
Investing, operating, and financing
Financing, operating and investing
Financing, investing, and operating
Question # 13 of 15 ( Start time: 01:21:04 AM ) Total Marks: 1
When a bond will sell at a discount?
Select correct option:
The coupon rate is greater than the current yield and the current yield is greater than yield to maturity
The coupon rate is greater than yield to maturity
The coupon rate is less than the current yield and the current yield is greater than the yield to maturity
The coupon rate is less than the current yield and the current yield is less than yield to maturity
Question # 14 of 15 ( Start time: 01:22:17 AM ) Total Marks: 1
Which of the following is the Double Entry Principle?
Select correct option:
Assets + Liabilities = Shareholders’ Equity
Assets = Liabilities + Shareholders’ Equity
Liabilities = Assets + Shareholders’ Equity
None of the given options
Question # 15 of 15 ( Start time: 01:23:17 AM ) Total Marks: 1
Which if the following is (are) true? I. The dividend growth model holds if, at some point in time, the dividend growth rate exceeds the stock’s required return. II. A decrease in the dividend growth rate will increase a stock’s market value, all else the same. III. An increase in the required return on a stock will decrease its market value, all else the same.
Select correct option:
I, II, and III
I only
III only
II and III only
In which of the following approach you need to bring all the projects to the same length in time?
Select correct option:
MIRR approach
Going concern approach
Common life approach
Equivalent annual approach
Question # 2 of 15 ( Start time: 01:10:53 AM ) Total Marks: 1
Which of the following is not the present value of the bond?
Select correct option:
Intrinsic value
Market price
Fair price
Theoretical price
Question # 3 of 15 ( Start time: 01:12:15 AM ) Total Marks: 1
Consider two bonds, A and B. Both bonds presently are selling at their par value of Rs. 1,000. Each pays interest of Rs. 120 annually. Bond A will mature in 5 years while bond B will mature in 6 years. If the yields to maturity on the two bonds change from 12% to 10%, ____________.
Select correct option:
Both bonds will increase in value, but bond A will increase more than bond B
Both bonds will increase in value, but bond B will increase more than bond A
Both bonds will decrease in value, but bond A will decrease more than bond B
Both bonds will decrease in value, but bond B will decrease more than bond A
Question # 4 of 15 ( Start time: 01:13:26 AM ) Total Marks: 1
Effective interest rate is different from nominal rate of interest because:
Select correct option:
Nominal interest rate ignores compounding
Nominal interest rate includes frequency of compounding
Periodic interest rate ignores the effect of inflation
All of the given options
Question # 5 of 15 ( Start time: 01:14:32 AM ) Total Marks: 1
For Company A, plow back ratio is 30%. What will be its Pay-out ratio?
Select correct option:
3.33%
30%
31%
70%
Question # 6 of 15 ( Start time: 01:15:27 AM ) Total Marks: 1
What is the most important criteria in capital budgeting?
Select correct option:
Return on investment
Profitability index
Net present value
Pay back period
Question # 7 of 15 ( Start time: 01:16:11 AM ) Total Marks: 1
Which of the following formulas represents a correct calculation of the degree of operating leverage?
Select correct option:
(Q - QBE)/Q
(EBIT) / (EBIT - FC)
[Q(P-V) + FC] /[Q(P-V)]
Q(P-V) / [Q(P-V) - FC]
Question # 8 of 15 ( Start time: 01:17:09 AM ) Total Marks: 1
Which of the following is NOT an example of a financial intermediary?
Select correct option:
Wisconsin S&L, a savings and loan association
Strong Capital Appreciation, a mutual fund
Microsoft Corporation, a software firm
College Credit, a credit union
Question # 9 of 15 ( Start time: 01:17:42 AM ) Total Marks: 1
What are the Indirect securities?
Select correct option:
The securities whose value depends on the cash flows generated by the underlying assets
The securities whose value depends on the value of the underlying assets
The securities that indirectly generate returns for its investors
All of the given options
Question # 10 of 15 ( Start time: 01:18:36 AM ) Total Marks: 1
When Investors want high plowback ratios?
Select correct option:
Whenever ROE > k
Whenever k > ROE
Only when they are in low tax brackets
Whenever bank interest rates are high
Question # 11 of 15 ( Start time: 01:19:28 AM ) Total Marks: 1
According to timing difference problem a good project might suffer from _____ IRR even though its NPV is ________.
Select correct option:
Higher; lower
Lower; Lower
Lower; higher
Higher; higher
Question # 12 of 15 ( Start time: 01:20:19 AM ) Total Marks: 1
The statement of cash flows reports a firm's cash flows segregated into which of the following categorical order?
Select correct option:
Operating, investing, and financing
Investing, operating, and financing
Financing, operating and investing
Financing, investing, and operating
Question # 13 of 15 ( Start time: 01:21:04 AM ) Total Marks: 1
When a bond will sell at a discount?
Select correct option:
The coupon rate is greater than the current yield and the current yield is greater than yield to maturity
The coupon rate is greater than yield to maturity
The coupon rate is less than the current yield and the current yield is greater than the yield to maturity
The coupon rate is less than the current yield and the current yield is less than yield to maturity
Question # 14 of 15 ( Start time: 01:22:17 AM ) Total Marks: 1
Which of the following is the Double Entry Principle?
Select correct option:
Assets + Liabilities = Shareholders’ Equity
Assets = Liabilities + Shareholders’ Equity
Liabilities = Assets + Shareholders’ Equity
None of the given options
Question # 15 of 15 ( Start time: 01:23:17 AM ) Total Marks: 1
Which if the following is (are) true? I. The dividend growth model holds if, at some point in time, the dividend growth rate exceeds the stock’s required return. II. A decrease in the dividend growth rate will increase a stock’s market value, all else the same. III. An increase in the required return on a stock will decrease its market value, all else the same.
Select correct option:
I, II, and III
I only
III only
II and III only
