Finance Mcqs
The principal amount of a bond at issue is called____________?

A. Par value
B. Coupon value
C. Present value of an annuity
D. Present value of a lump sum

Which of the following is the process of planning and managing a firm‟s long-term investments?

A. Capital Structuring
B. Capital Rationing
C. Capital Budgeting
D. Working Capital Management

A standardized financial statement presenting all items of the statement as a percentage of total is:

A. a common-size statement
B. an income statemen
C. a cash flow statement
D. a balance sheet

The DuPont Identity tells us that Return on Equity is affected by:

A. The DuPont Identity tells us that Return on Equity is affected by:
B. asset use efficiency (as measured by total assets turnover)
C. financial Leverage (as measured by equity multiplier)
D. all of the given options (a, b and c)

Which of the following is the overall return the firm must earn on its existing assets to maintain the value of the stock?

A. IRR (Internal Rate of Return)
B. MIRR (Modified Internal Rate of Return)
C. WACC (Weighted Average Cost of Capital)
D. AAR (Average Accounting Return)

Which of the following strategy belongs to restrictive policy regarding size of investments in current assets?

A. To maintain a high ratio of current assets to sales
B. To maintain a low ratio of current assets to sales
C. To less short-term debt and more long-term debt
D. To more short-term debt and less long-term debt

When real rate is high, all the interest rates tend to be ___________?

A) Higher
B) Lower
C) Constant
D) None of the given options

Which of the following is known as the group of assets such as stocks and bonds held by an investor ?

A. Stock Bundle
B. Portfolio
C. Capital Structure
D.. None of the given options