Deneme Sınavı Soruları

Which of the following is an advantage of common stock?

what is common stock?

1. If a project is independent, approve the project(s) that pays the initial investment back less than a specified payback period.
2. If a project is mutually exclusive, choose the project that provides the shortest payback period.
3. Payback period technique tells the length of time it takes to get the initial cash outflow back.
4. All you have to do is find when cumulative cash inflows will be equal to initial cash outflow.
5. Payback period technique assumes that all investment projects have the same level of risk.

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

In which of the following is the interest rate floating and not fixed?

1. Estimating cash flow
2. Adding up the discounted cash flows to obtain NPV
3. Discounting cash flows by an appropriate discount rate
4. Projecting the risk differences of different projects

Which of the following are the steps of calculating net present value?

The following sources of financing are tax deductible except for...........

The discount rate which equates the present value of all cash outflows with the future value of all cash inflows (terminal value) is referred to as ........................

In which of the following is the decision rule for internal rate of return technique given correctly if a project is independent?

Which of the following is not among the other factors that affect the capital structure?

Which of the following is the equation used to calculate ROIC?

What occurs when one party from a financial transaction has different information than the other?

XYZ Corp. distributes 50% of its net income as dividends. The firm’s ROE is 20% and last year stockholders received $1 dividends per share. Currently the stock sells at $20. What is the cost of equity for XYZ Corp?

1. Internal rate of return technique finds the rate of return that causes the net present value of a project to be zero.
2. Internal rate of return technique assumes that all investment projects have the same level of risk.
3. If a project is independent, approve the project(s) that provides internal rate of return that is greater than the expected rate of return (discount rate used in net present value technique).
4. If a project is mutually exclusive, choose the project that provides the highest internal rate of return (that is greater than the expected rate of return (discount rate used in net present value technique)).

Which of the statements above related to internal rate of return technique are correct?

XLM Corp. has a bond issue outstanding for which the yield-to-maturity is 8.45%. Analysts estimate a risk premium of 3.15% for the company's stock. What is the expected cost of equity of XLM according to the bond-yield-plus-risk-premium approach?

X Corp. expects $500,000 EBIT. The cost of equity is 12% and the company pays 8% on its borrowings.What is the firm value at $1,000,000 leverage amount?

What is the WACC if the company has a $300,000 EBIT, $750,000 value of debt and $500,000 value of equity?

1. Debt securities are typically called notes, debentures, or bonds depending on their peculiarities.
2. Issues with an original maturity of 10 years or less are often called bonds
3. Longer-term issues are called notes.
4. Long-term debt can be issued in two different forms, public-issue and privately-placed.
5. Although the major terms and conditions are the same, under privately placed issues all of the bonds are sold to a single lender, not offered to the public.

Which of the above statements in terms of debt securities are correct?

1. Stockholders
2. Sales volume
3. Per-unit price
4. Input costs
5. Competition

Which of the above are among the factors affecting the business risk?

I.   Desired Level of Leverage

II.  Cost of Capital

III. Nature of the Business

IV.  Size of the Company

Which of the above are among the factors determining capital structure?