Deneme Sınavı Soruları

Which of the following are used to reduce the tax burden and overall profitability of the company?

Which one of the following is the uncertainty inherent to the entire market or entire market segment?

How does the economic environment affect the business?

Which of the following is not one of the approaches to measuring a project’s risks coming from various sources rather than in general manner?

1. The WACC estimation should be based on the market values of the capital components.
2. The weights of the capital components should not be computed on book values.
3. In the evaluation of the capital budgeting projects, the WACC of the firm should be used as a decision criterion.

Which of the statements above is/are true about weighted average cost of capital?

1. Discounted payback tells the length of time it takes to get the initial cash outflow back.
2. The only difference is cumulative present values of cash inflows (rather than numerical sum values) will be equal to the initial cash outflow.
3. Projected cash flows are discounted at an appropriate discount rate and their present values are used to calculate payback period.
4. Assumptions are the same with payback period technique.
5. This technique assumes that cash flow occurs at a constant rate throughout the year, and assumes that all investment projects have the same level of risk.
6. If a project is independent approve the project(s) that pays the initial investment back less than a specified payback period.
7. If a project is mutually exclusive, choose the project that provides the shortest discounted payback period.

Which of the statements above related to discounted payback period technique are correct?

Positive economic profits (or positive net present value projects) can stem from two sources: 1) ...... , 2) creating competitive advantage.

Which of the following completes the sentence above?

Which of the followings is the main form that banks provide medium and long term funding?

1. Shifts in the demand for the products/ services of the company
2. Fluctuations in the sales price due to market volatility
3. Changes in input costs
4. The cost structure of the company
5. The ability to adapt cost-effective measures to changes in both the input costs and output prices

Which are among the factors affecting the business risk of a firm?

I. Shifts in the demand for the products/ services of the company.

II. Fluctuations in the sales price due to market volatility. 

III. Changes in input costs.

IV. The cost structure of the company

Which of the factors above affects the business risk of a firm?

In common stocks, if the company is wound up, the ordinary or equity shareholders have the right to get the claims on assets. These rights are only available to the equity shareholders.

Which of the following terms is used to refer to this situation?

... is the return a company requires to decide if an investment meets capital return requirements.

Which one of the following completes the sentence?

Which one is not among the factors affecting the business risk of a firm?

... refers to the process of evaluating and selecting long-term investments which are consistent with the firm’s main objective of maximizing shareholders’ wealth.

Which one of the following completes the sentence?

Which of the followings is not among the possible costs considering long-term loans?

1. Retained earnings are one of the least costly sources of finance since it does not involve any floatation cost as in the case of raising funds by issuing different types of securities.
2. Retained earnings are most useful to expansion and diversification of the business activities.
3. If the companies use equity finance they have to pay a dividend.
4. When the company uses the retained earnings as the sources of finance for their financial requirements, the cost of capital is more expensive than the other sources of finance.
5. Retained earnings provide opportunities for evasion of excessive tax in a company when it has a small number of shareholders.

Which of the above statements in terms of the advantages of retained earnings are correct?

XYZ Corp. has a historical beta of 0.9 and the expected market return is 8%, whereas the risk-free rate is 2%. What is the required return of the stockholders of XYZ?

A corporation has a bond issue outstanding for which the yield-to-maturity is % 6.75. Analysts estimate a risk premium of % 4.80 of the company's stock. What is the expected cost of equity of this corporation?

According to the Dividend Growth Model, the cost of equity reflects ..........

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?