Busıness Fınance I Ara 10. Deneme Sınavı
Toplam 20 Soru1.Soru
If you deposit $20,000 per year for 8 years which are made at the end of each year in an account that pays an annual interest rate of 10%, what will your account be worth at the end of 8 years?
$250,435 |
$225,980 |
$228,717 |
$243,745 |
$213,762 |
20000*((1,10^8)-1)/0.10 = 228,117
2.Soru
Which of the following statements is TRUE about the amortization process of loans?
The amount of the installment payment decreases each period |
The amount of the principal repayment decreases each period |
The installment payment includes the interest and the principal amount |
The amount of the interest payment increases each period |
The total of the installment payments equals the beginning amount of the loan |
"The installment payment includes the interest and the principal amount" is TRUE. All the other statements are false.
3.Soru
A friend of yours asks to borrow some amount of money from you today and promises to pay you TL 5000 3 years later. If you expect to earn an annual interest rate of 10 %, how much money should you lend today?
3969 |
3861 |
3757 |
3656 |
3559 |
5000/(1+0,1)^3=3757
4.Soru
Which of the following is one of the potential benchmarks that could be used to compare a company's financial ratios?
Industry averages |
previous year's results |
best company in the industry |
closest competitor in the market |
all of the above |
Potential benchmarks to use in financial analysis are, (i) industry averages, (ii) previous year results and (iii)benchmark company (closest competitor in the market, or best company in the industry) results.
5.Soru
Selex produces computer hardware. Selex expects a 80% increase in its operating income if its sales were to rise by 20%.What is the DOL for Selex?
2 |
3 |
4 |
5 |
6 |
DOL=80/20=4
6.Soru
.................. includes review to determine the current financial performance and condition of the business; an identification of any
particular financial problems, risks, constraints or limitations, and an assessment of financial strengths, weaknesses, opportunities, and threats.
Which of the following answers complete the sentence above correctly?
Financial planning |
Financial control |
Financial analysis |
Financial decision-making |
Financial monitoring |
Financial analysis includes review to determine the current financial performance and condition of the business; an identification of any particular financial problems, risks, constraints or limitations, and an assessment of financial strengths, weaknesses, opportunities, and threats.
7.Soru
Which kind of ratios gives the expectations of the market regarding the returns on a specific stock?
Price Earning Ratio |
Price to Book Ratio |
Dividend Payout |
Dividend Yield |
Profitability Ratio |
Price to Book Ratio gives the expectations of the market regarding the returns on a specific stock. The correct answer is B.
8.Soru
Selex and Medex are two competitors in the same industry. Both companies produce computer hardware. Selex expects a 20% increase in its operating income if its sales were to rise by 10%. On the other hand, Medex has a contribution margin ratio of 50%, total fixed costs of $500,000 and sales revenue of $2,500,000. If both companies are expecting a 15% increase in sales as the result of the expansion in the market, how much will their operating income change?
Selex:30% Melex:25% |
Selex:30% Melex:25.05% |
Selex:30% Melex:20 Selex:30% Melex:25% % |
Selex:30% Melex:25% |
Selex:15% Melex:25% |
Selex DOL = 20% 10% = 2
Medex DOL = $2,500,000 -$1,250,000 $2,500,000 -$1,250,000 -$500,000 = 1.67
Change in the operating income of Selex = 2*15% = 30%
Change in the operating income of Medex = 1.67*15% = 25.05%
9.Soru
What is return on equity for year 2015?
55.8% |
61.2% |
65.6% |
67.2% |
76.7% |
return on equity=net income/average equity
For year 2015 average equity=0.5*(39600+48000)=43800
So return on equity=26800/43800=61.2%
10.Soru
Which one defines the distribution of parts of the profit of a company to its shareholders?
Capital budget |
Primary market |
Financial structure |
Share |
Dividend |
Financial managers should decide on how much of their profits to pay out to shareholders in the form of dividends, and how much to retain to finance company’s future investments and growth. It is a strategic decision involving a trade-off between the payment of dividends to shareholders and retention of earnings to finance investments. Dividend policy is the approach the company takes in determining how much and how dividend to pay out to shareholders.
11.Soru
Which of the following refer to the costs that do not vary with the level of activity of a firm?
Mixed Costs |
Variable Costs |
Fixed Costs |
Marginal Costs |
Opportunity Costs |
The variable costs directly change in proportion to the level of activity while the fixed costs are the same within a specific activity range. The unit variable costs are constant at different levels of activity. On the other hand, the unit fixed cost decreases as the level of activity increases and is minimized at full capacity production.
12.Soru
In vertical analysis of the income statement the items in the income statement are expressed as a percentage of ______________.
Total assets |
Total Liabilites |
Sales |
Cost of sales |
Profit/Loss |
In vertical (or common size analysis), the items in the financial statements are expressed as a percentage of total assets or sales. In case of vertical analysis of income statement, the items in the income statement are expressed as a percentage of sales.
13.Soru
Which of the following is the basic accounting equation?
Assets=Liabilities+Equity |
Liabilities=Assets+Equity |
Equity=Assets+Liabilities |
Assets=Liabilities-Equity |
Assets=Equity-Liabilities |
The sum of liabilities and equity must be equal to assets.
14.Soru
Lease is a contract whereby one party, the lessor, grants the right to use a particular good for a period of time to the other party, the lessee, which will pay a fixed amount regularly for a certain period of time. When a lease payment is made, it typically covers the month-long period following the payment date. Therefore, lease payments are ________.
Perpetuity |
Ordinary annuity |
Annuity due |
Future value |
Present value |
Annuity due cash flows are at the beginning of the period.
15.Soru
(Please answer questions 2-7 using the table above.) What is the current ratio for 2015?
0.8 |
1.25 |
2.4 |
3 |
3.75 |
Current ratio is found by dividing current assets to current liabilities. So 16200/5400=3 is the current ratio for 2015.
16.Soru
Which one gives the expectations of the market regarding the returns on a specific stock?
Price earnings ratio |
Price to book ratio |
Dividend yield |
Net income |
Dividend payout |
Price to Book Ratio (P/B Ratio) gives the expectations of the market regarding the returns on a specific stock. It is expressed as:
Price Book Ratio = Market Price per Share / Book Value per Share
17.Soru
If you wanted to determine the FV of 1.000 TL invested at 8% for 5 years, which of the following is the correct value?
1.369,33 TL |
1.469,33 TL |
1.569,33 TL |
1.669,33 TL |
1.769,33 TL |
at t = 5, 8% interest FV = 1.000 * (1 + 0,08)5 = 1.000 * 1,46933 = 1.469,33 TL
18.Soru
In which area , the CVP analysis technique CANNOT be used?
Accounting |
Managerial Finance |
Marketing |
Production |
Customer relations |
CVP analysis is a financial performance measurement tool. It t is not merely an accounting technique, but it is also applicable in the decision making of managerial finance, marketing and production. However for customer relations it is not an applicable technique. The correct answer is E.
19.Soru
You would like to accumulate some amount of money at the time you retire by investing equal amounts of money at the end of each month for some years. Earning some fixed interest rate during the period, you wonder how much you should save each month to achive your target amount of money in the future. In this case, you must compute ......
the future value of thethe annuity |
the present value of the annuity |
the payment of the annuity |
the future value of some present value |
the present value of some future value |
The equal installments that should be invested each month refers to the payment of the annuity
20.Soru
Which of the following refers to a situation where shareholders are liable for all of company debts with all of the company assets and their personal assets.
Unlimited liability |
Limited liability |
Corporation |
Joint stock company |
Cooperative company |
Unlimited liability refers to a situation where shareholders are liable for all of company debts with all of the company assets and their personal assets.
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