Deneme Sınavı Soruları

Which of the following is not true for preferred stocks?

What is an indicator of financial risk and occurs in case of borrowing?

Whic one of the following tells the ratio of the present value of a project’s cash inflows to the present value of all cash outflows or initial cash outflow?

ABC Corp. in the above example grows at 6%. Last year’s dividend was $1.50 per share and currently the stock sells at 29. If ABC issues new shares to raise external equity, flotation costs of $4/share will be incurred. What is the cost of external equity?

Which of the following term refers to a change in a firm’s net cash flow attributable to an investment project?

How do you determine the optimal capital structure?

A & B Corp. has the following optimal capital structure:

• Long-term Debt 20%
• Preferred Stocks 10%
• Common Equity 40%

The interest rate on the company’s long-term borrowings is 7%. Preferred stockholders require 13% return on their investments and common shareholders are paid 15% on equity capital. The company has a tax rate of 40%. What is the WACC for A & B Corp.?

Which one of the following is the equation of (Net income of project + Depreciation)?

... is an average value of the interest rate which is calculated from estimates submitted by the leading global banks on a daily basis.

Which one of the following completes the sentence?

I.   Permanent sources of finance

II.  Irredeemable

III. No fixed dividend payment obligation

IV.  Lower cost of capital

Which of the above are among the advantages of common stock?

... 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?

I.   The basic terms of the bonds

II.  The total amount of bonds issued

III. The repayment arrangements

IV.  Details of the protective covenants

Which of the above are among the provisions the bond indenture includes?

Which one of the following explains the likelihood that a company will be unable to meet its debt obligations?

What is the type of projects in which selecting one project prevents other projects from being undertaken?

Which of the following is a benchmark rate that represents the interest rate at which banks offer to lend funds to one another in the international interbank market for short-term loans?

"Financial leverage is .................."

Which of the following appropriately completes the sentence above?

Which one of the following is a ratio measuring the profitability on equity capital and it is the division of the net income by the total common equity?

In terms of the factors affecting the capital structure, which of the following is among the economic environment factors?

Which one of the following provides a practical but highly subjective solution to the estimation of the cost of equity?

Which of the following assumes an optimal capital structure where the WACC is minimized and the value of the firm is maximized?