On Wed, Jul 6, 2011 at 10:10 AM, Zubair Hussain <zubair@vuzs.net> wrote:
Answer for this MCQ is 4th option (all of the given) as all the options represent the opportunity cost of capital in some form.For reference please followThe 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 capitalThe company cost of capital is the expected rate of return demanded by investors in a companyAll of the given optionswell this question is controversial because in all files its 4 but as per my knowledge it shd be 1.... so now its upto you whichever you find better.
On Wed, Jul 6, 2011 at 5:27 AM, Fizza Dastgir <mc090405569@vu.edu.pk> wrote:Question # 1 of 15 ( Start time: 10:31:34 PM ) Total Marks: 1A 5-year ordinary annuity has a present value of Rs.1,000. If the interest rate is 8 percent, the amount of each annuity payment is closest to which of the following?Select correct option:Rs. 250.44Rs. 231.91Rs.181.62Rs.184.08Question # 2 of 15 ( Start time: 10:32:17 PM ) Total Marks: 1Why we need Capital rationing? (Select correct option:Because, there are not enough positive NPV projectsBecause, companies do not always have access to all of the funds they could make use ofBecause, managers find it difficult to decide how to fund projectsBecause, banks require very high returns on projectsQuestion # 3 of 15 ( Start time: 10:32:58 PM ) Total Marks: 1Which of the following would be a lien against a group of assets without the assets being specifically identified?Select correct option:Trust receiptChattel mortgageFloating lienTerminal warehouse receiptQuestion # 4 of 15 ( Start time: 10:34:23 PM ) Total Marks: 1Coefficient of variation is NOT the measure of __________.Select correct option:RiskProbabilityRelative dispersionRisk per unit of expected return
Question # 5 of 15 ( Start time: 10:35:02 PM ) Total Marks: 1Which of the following statements is true?Select correct option:The financial risk of a firm decreases when it takes on a risky projectThe financial risk of a firm increases when it takes on more equityThe business risk of a firm increases when it takes on a risky projectThe business risk of a firm increases when it takes on more debt
Question # 6 of 15 ( Start time: 10:35:54 PM ) Total Marks: 1Which of the following refers to a policy of dividend "smoothing"?Select correct option:Maintaining a constant dividend payout ratioKeeping the regular dividend at the same level indefinitelyMaintaining a steady progression of dividend increases over timeAlternating cash dividends with stock dividendsQuestion # 7 of 15 ( Start time: 10:36:51 PM ) Total Marks: 1If a firm has a DOL of 5 at Q units, what would be the effect on sales and EBIT?Select correct option:If sales rise by 5%, EBIT will rise by 5%If sales rise by 1%, EBIT will rise by 1%If sales rise by 5%, EBIT will fall by 25%If sales rise by 1%, EBIT will rise by 5%Question # 8 of 15 ( Start time: 10:37:29 PM ) Total Marks: 1Which of the following is the maximum amount of debt (and other fixed-charge financing) that a firm can adequately service?Select correct option:Debt capacityDebt-service burdenAdequacy capacityFixed-charge burdenQuestion # 9 of 15 ( Start time: 10:38:00 PM ) Total Marks: 1For Company A, plow back ratio is 30%. What will be its Pay-out ratio?Select correct option:3.33%30%31%70%
Question # 10 of 15 ( Start time: 10:38:37 PM ) Total Marks: 1Which of the following is the cash required during a specific period to meet interest expenses and principal payments?Select correct option:Debt capacityDebt-service burdenAdequacy capacityFixed-charge burdenQuestion # 11 of 15 ( Start time: 10:39:13 PM ) Total Marks: 1Which 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 capitalThe company cost of capital is the expected rate of return demanded by investors in a companyAll of the given optionswell this question is controversial because in all files its 4 but as per my knowledge it shd be 1.... so now its upto you whichever you find better.Question # 12 of 15 ( Start time: 10:39:45 PM ) Total Marks: 1If Deen Muhammad Suppliers receive an invoice for purchases dated 12/12/2002 subject to credit terms of "2/10, net 30", what is the last possible day the discount can be taken?Select correct option:January 11January 22January 30December 30Question # 13 of 15 ( Start time: 10:41:12 PM ) Total Marks: 1The return in excess to risk free rate that investors require for bearing the market risk is known as:Select correct option:Default risk premiumSovereign Risk PremiumMarket risk premiumMaturity risk premiumQuestion # 14 of 15 ( Start time: 10:41:52 PM ) Total Marks: 1Which of the following is the cash required during a specific period to meet interest expenses and principal payments?Select correct option:Debt capacityDebt-service burdenAdequacy capacityFixed-charge burdenQuestion # 15 of 15 ( Start time: 10:42:18 PM ) Total Marks: 1If the marginal reduction in order costs exceeds the marginal carrying cost of inventory, then what should be done by the firm?Select correct option:The firm has minimized its total carrying costsThe firm should increase its order sizeThe firm should decrease its order sizeThe firm has maximized its order costsOn Tue, Jul 5, 2011 at 10:49 PM, Angel Eyes <zoya.vu@gmail.com> wrote:
thanks fizza this is my new quiz please unsolved ka bhe answer de dain
Question # 1 of 15 ( Start time: 10:31:34 PM ) Total Marks: 1A 5-year ordinary annuity has a present value of Rs.1,000. If the interest rate is 8 percent, the amount of each annuity payment is closest to which of the following?Select correct option:Rs. 250.44Rs. 231.91Rs.181.62Rs.184.08Question # 2 of 15 ( Start time: 10:32:17 PM ) Total Marks: 1Why we need Capital rationing? (Select correct option:Because, there are not enough positive NPV projectsBecause, companies do not always have access to all of the funds they could make use ofBecause, managers find it difficult to decide how to fund projectsBecause, banks require very high returns on projectsQuestion # 3 of 15 ( Start time: 10:32:58 PM ) Total Marks: 1Which of the following would be a lien against a group of assets without the assets being specifically identified?Select correct option:Trust receiptChattel mortgageFloating lienTerminal warehouse receiptQuestion # 4 of 15 ( Start time: 10:34:23 PM ) Total Marks: 1Coefficient of variation is NOT the measure of __________.Select correct option:RiskProbabilityRelative dispersionRisk per unit of expected returnQuestion # 5 of 15 ( Start time: 10:35:02 PM ) Total Marks: 1Which of the following statements is true?Select correct option:The financial risk of a firm decreases when it takes on a risky projectThe financial risk of a firm increases when it takes on more equityThe business risk of a firm increases when it takes on a risky projectThe business risk of a firm increases when it takes on more debtQuestion # 6 of 15 ( Start time: 10:35:54 PM ) Total Marks: 1Which of the following refers to a policy of dividend "smoothing"?Select correct option:Maintaining a constant dividend payout ratioKeeping the regular dividend at the same level indefinitelyMaintaining a steady progression of dividend increases over timeAlternating cash dividends with stock dividendsQuestion # 7 of 15 ( Start time: 10:36:51 PM ) Total Marks: 1If a firm has a DOL of 5 at Q units, what would be the effect on sales and EBIT?Select correct option:If sales rise by 5%, EBIT will rise by 5%If sales rise by 1%, EBIT will rise by 1%If sales rise by 5%, EBIT will fall by 25%If sales rise by 1%, EBIT will rise by 5%Question # 8 of 15 ( Start time: 10:37:29 PM ) Total Marks: 1Which of the following is the maximum amount of debt (and other fixed-charge financing) that a firm can adequately service?Select correct option:Debt capacityDebt-service burdenAdequacy capacityFixed-charge burdenQuestion # 9 of 15 ( Start time: 10:38:00 PM ) Total Marks: 1For Company A, plow back ratio is 30%. What will be its Pay-out ratio?Select correct option:3.33%30%31%70%
Question # 10 of 15 ( Start time: 10:38:37 PM ) Total Marks: 1Which of the following is the cash required during a specific period to meet interest expenses and principal payments?Select correct option:Debt capacityDebt-service burdenAdequacy capacityFixed-charge burdenQuestion # 11 of 15 ( Start time: 10:39:13 PM ) Total Marks: 1Which 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 capitalThe company cost of capital is the expected rate of return demanded by investors in a companyAll of the given optionsQuestion # 12 of 15 ( Start time: 10:39:45 PM ) Total Marks: 1If Deen Muhammad Suppliers receive an invoice for purchases dated 12/12/2002 subject to credit terms of "2/10, net 30", what is the last possible day the discount can be taken?Select correct option:January 11January 22January 30December 30Question # 13 of 15 ( Start time: 10:41:12 PM ) Total Marks: 1The return in excess to risk free rate that investors require for bearing the market risk is known as:Select correct option:Default risk premiumSovereign Risk PremiumMarket risk premiumMaturity risk premium
Question # 14 of 15 ( Start time: 10:41:52 PM ) Total Marks: 1Which of the following is the cash required during a specific period to meet interest expenses and principal payments?Select correct option:Debt capacityDebt-service burdenAdequacy capacityFixed-charge burdenQuestion # 15 of 15 ( Start time: 10:42:18 PM ) Total Marks: 1If the marginal reduction in order costs exceeds the marginal carrying cost of inventory, then what should be done by the firm?Select correct option:The firm has minimized its total carrying costsThe firm should increase its order sizeThe firm should decrease its order sizeThe firm has maximized its order costs--*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*Angel Eyes*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*
On Thu, Jun 30, 2011 at 2:35 AM, Fizza Dastgir <mc090405569@vu.edu.pk> wrote:All of the following are the reasons for Uncertain NPV calculations EXCEPT:Select correct option:
Estimated discount rate does not change with the markets
Estimated Life of project is doubtful
Annual after-tax cash flows are difficult to estimate
Timing of cash flows is not exactly predictable--On Mon, Jun 27, 2011 at 11:45 PM, Banjara <loveisluck2@gmail.com> wrote:
Limitation of NPV analysis in Uncertain settings
1. Requires information about cash flow that may oftennot be knownCharacterizing the level of risk and uncertainty associatedwith a new and innovative strategy is itself an uncertain and risky undertaking2. Assumes uncertainty and risk associated with astrategy remain constant over the life of that strategyRisk level differs over different periods, and is itself affectedby strategic actions3.Fails to incorporate value of future strategies that areenabled by current strategyPath dependent nature of capability acquisition
Hope this may help you to understand the question n answer yourself. Just try :)On Mon, Jun 27, 2011 at 10:53 PM, Angel Eyes <zoya.vu@gmail.com> wrote:All of the following are the reasons for Uncertain NPV calculations EXCEPT:Select correct option:--
Estimated discount rate does not change with the markets
Estimated Life of project is doubtful
Annual after-tax cash flows are difficult to estimate
Timing of cash flows is not exactly predictable--*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*Angel Eyes*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*
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