AÖF Soru Bankası
FİN208U

Busıness Fınance II (ENG)

2021–2022 Vize (Ara Sınav) Çıkmış Soruları

  • 20 soru
  • Soru metinleri açık; şıklar ve cevap anahtarı uygulamada
  1. 1
    Suppose that "Red Company" has a project proposal, requiring initial investment of 500 million USD. The expected rate of return from expansion investments (discount rate) is 20%. Projected non-cumulative cash inflows (USD in millions) of the project for the next three years are as follows. Year 1 - 190 Year 2 - 280 Year 3 - 400 (1.22 = 1.44; 1.23 = 1.73) Relying above information, what is the net present value of the project? (USD in millions) net
    • A92.54
    • B83.99
    • C74.39
    • D68.41
    • E55.74
  2. 2
    ABC Corp. has a bond issue outstanding for which the yield-to-maturity is 10%. Analysts estimate a risk premium of 4% for the company's stock. ABC's beta is 1.5. What is the expected cost of equity of ABC Corp. according to bond yield + risk premium approach?
    • A14%
    • B16 %
    • C19%
    • D20 %
    • E21 %
  3. 3
    Which of the following is used in order to modify internal rate of return in "Modified Internal Rate of Return Technique" of capital project evaluation?
    • ATerminal value
    • BBook value
    • CSunk cost
    • DS Liquidation value
    • ENet present value
  4. 4
    I. Permanent sources of finance Il. Irredeemable III. No fixed dividend payment obligation IV. Lower cost of capital Which of the above are among the advantages of common stock?
    • AI and |l
    • BIII and IV
    • CI, III and IV
    • DII, Ill and IV
    • EI, II, Ill and IV
  6. 5
    Optimum capital structure is ..... Which of the following completes sentence above?
    • Athe capital structure at which the sales level is at maximum
    • Bthe capital structure at which the weighted average cost of capital is minimum
    • Cthe capital structure at which the value of the firm is minimum
    • Dthe capital structure at which the borrowing cost is minimum
    • Ethe capital structure at which the weighted average cost of capital is maximum
  7. 6
    Which of the theory advocates that asymmetric information affect on capital structure?
    • AModigliani - Miller Theory
    • BNet Operating Income Approach
    • CNet Income Approach lar.
    • DTraditional Approach
    • ESignaling Theory
  8. 7
    Which of the following is not true for call provision in a bond issue?
    • AIt is the same with deferred call provision
    • BIt is realized over a specific period
    • CIt allows the company to purchase its bonds
    • DIt allows the company to repurchase part of the bond issue
    • EIt is realized at stated prices over a specific period
  9. 8
    Which of the following refers to mortgage security?
    • ADebt securities collateralized
    • BEquity securities backed by mortgages
    • CDebt securities backed by mortgages
    • DEquity securities backed by home sales
    • EDebt securities backed by home sales
  11. 9
    XYZ Corp. distributes 70% of its net income as dividends. The firm's ROE is 20%. What is the expected growth rate?
    • A6 %
    • B8 %
    • C10 %
    • D12%
    • E14%
  12. 10
    Which of the following statement is true about net operating income approach?
    • AThe model considers that the cost of debt increases at higher levels of leverage as creditors' risk rises.
    • BThe model advocates that the value of the firm is its net operating income and capitalized with increasing WACC.
    • CThe model assumes that the value of the firm increase with financial leverage.
    • DThe cost of the debt is a constant when cost of the equity and the WACC rises.
    • EThe model advocates that the firm value will remain unchanged by the financial decisions.
  13. 11
    Which theory suggests that agency problems may arise if managers (agents) pursue different objectives other than those of the shareholders (principals)?
    • ASignaling Theory
    • BModigliani and Miller Capital Structure Theory
    • CTrade-off Theory
    • DAgency Theory
    • ETraditional Approach
  14. 12
    Which of the following term refers to the difference of present value of all cash inflaws and cash outflows of a project over its life?
    • APayback period
    • BE Discounted payback period
    • CTerminal value ul
    • DNet present value
    • EInternal rate of return
  16. 13
    Which of the following is amongst the lending special financial institutions in Turkey?
    • AVakıfbank
    • BTürkiye Iş Bankası
    • CZiraat Bankası
    • DDevelopment and Investment Bank
    • EHalkbank
  17. 14
    X Corp. has the optimal capital structure that long-term debt has 15% of weight, preferred stocks have 25% of weight and common equity has 60% of weight. The interest rate on the company's long-term borrowing is 10%. Preferred stockholders require 12% return on their investments and common shareholders are paid 10% on equity capital. According to above data, If the company has a tax rate of 40%, what is the WACC for X Corp?
    • A12.0%
    • B11.2%
    • C9.9%
    • D8.5%
    • E8.1%
  18. 15
    Which of the following statements is not true about net income approach for capital structure?
    • AThis approach advocates that a firm raise its value by lowering its WACC with increasing financial leverage.
    • BThis approach assumes that the cost of equity is always more than cost of debt.
    • CThis approach assumes that there are no taxes.
    • DThis approach ignores high leverage may cause bankruptcy.
    • EThis approach advocates that when WACC and cost of debt are constant, cost of equity will increase.
  19. 16
    Which of the following is the measure of sytematic risk of a stock?
    • AVega
    • BAlpha
    • CGamma
    • DBeta
    • ETheta
  21. 17
    Which of the following technique is used to find the rate of return that causes the net present value of a project to be zero?
    • APayback period
    • BTerminal value
    • CInternal rate of return of.
    • DDiscounted payback period
    • ENet present value
  22. 18
    Which capital structure theory model assumes that the cost of debt, the WACC and the value of the firm is irrespective of financial leverage?
    • ANet Income Approach
    • BNet Operating Income Approach
    • CTraditional Approach
    • Dlof. D) Signaling Theory
    • ETrade-Off Theory
  23. 19
    Which of the following is the effect of the present value of the delayed capital expenditure of future cost savings in real options?
    • AEffect of the risk-free interest rate in stock options
    • BEffect of the time remaining to the expiration of the option in stock options
    • CEffect of the volatility of stock's price in stock options
    • DEffect of stock's price in stock options
    • EEffect of the exercise (strike) price of the option in stock options
  24. 20
    Z Corp. issued preferred stocks at $15 per share. Each share has flotation cost of $1 on the preferred stock issue and pay dividend of $1,4. What is the cost of preferred stock financing for Z Corp?
    • A12.6%
    • B10.0%
    • C8.5%
    • D7.5%
    • E5.0%
Şıkları ve doğru cevapları görBusıness Fınance II (ENG) dersinin tüm sınavları, cevap anahtarları, süreli mod ve yanlış analizi uygulamada.Uygulamada aç