Financial management
Regulation Q, which is no longer in existence
Regulation M
Regulation D
Regulation B, which is still in existence
Answer is Right!
Answer is Wrong!
12. Which of the following is not true with reference capital budgeting?
Capital budgeting is related to asset replacement decisions
Cost of capital is equal to minimum required return
Existing investment in a project is not treated as sunk cost
Timing of cash flows is relevant
Answer is Right!
Answer is Wrong!
Detailed SolutionWhich of the following is not true with reference capital budgeting?
13. Securitization is related to conversion of:
Receivables
Stock
Investments
Creditors
Answer is Right!
Answer is Wrong!
Detailed SolutionSecuritization is related to conversion of:
14. Retention ratio is 0.55 and return on equity is 12.5% then growth retention model would be
11.95%
6.88%
13.05%
22.72%
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Answer is Wrong!
15. In weighted average cost of capital, cost of capital which is risk adjusted and developed for each category of
”long-term
”industry
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Answer is Wrong!
16. Which of the following is not normally one of the reasons for a change in an investor’s circumstances?
Change in market conditions
Change in legal considerations
Change in time horizon
Change in tax circumstances
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Answer is Wrong!
17. According to top rating agencies S&P triple-A and double-A rating bonds are classified as an
extremely discounted
extremely safe
extremely risky
extremely inflated
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Answer is Wrong!
18. Which element of the basic NPV equation is adjusted by the RADR?
Denominator
Numerator
Both A and B
None of these
Answer is Right!
Answer is Wrong!
Detailed SolutionWhich element of the basic NPV equation is adjusted by the RADR?
19. Noncash revenues and noncash charges if it subtracted from net income is equal to
free cash flow
retained cash flow
net cash flow
financing cash flow
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Answer is Wrong!
Detailed SolutionNoncash revenues and noncash charges if it subtracted from net income is equal to
20. To whom does the Treasurer most likely report?
Chief Financial Officer
Vice President of Operations
Chief Executive Officer
Board of Directors
Answer is Right!
Answer is Wrong!
Detailed SolutionTo whom does the Treasurer most likely report?