Deneme Sınavı Soruları

What do you mean by optimal capital structure?

BB Corp. borrows $50,000 as a bank loan at an annual interest rate of 5%. The company pays 20% corporate tax rate. What is the after-tax rate of borrowing for BB Corp.?

...............  claims that  firms follow a hierarchy of funds in financing. Firstly, internal funds are exhausted by reinvesting the net income, and in raising external capital, debt is preferred over equity.

What is the formula above used to calculate?

The marginal cost of capital (MCC) is the composite cost of the last dollar of new capital raised.

Which of the following term refers to all kinds of spendings made for acquiring, sustaining, and increasing production factors?

Which theory suggests that agency problems may arise if managers (agents) pursue different objectives other than those of the shareholders (principals)?

Capital structure is a mix of the following sources of financing except for.....

What is the concept of leasing?

All of the following is a component of WACC, except...

Which one of the following estimates the required return of a stock investment in relation to its systematic risk which cannot be diversified away in a portfolio context?

1. The cost of equity is the return a company requires to decide if an investment meets capital return requirements.
2. A firm uses cost of equity to assess the relative attractiveness of investments
3. A business can raise equity capital either through a common stock issue or a preferred stock issue.

Which of the statements above is/are true for cost of equity?

In which bank loan type, a limit of credit is set on the credit account of the borrower and both limits of credit and the due date are determined in a loan agreement?

What is a Eurobond?

NOPAT/Capital

Which one of the following is the refers to this formula?

Which of the follwoing statements about discounted payback period is FALSE?

1. If the net present value is greater than zero (positive net present value) for a project, it means that the project will increase the shareholder value by that amount.
2. If the net present value is smaller than zero (negative net present value) for a project, it means that the project will decrease the shareholder value by that amount.
3. Net present value technique finds the sum of present value of all cash inflaws and cash otflows of a project over its life.
4. If a project is independent, approve the project(s) that provide a positive net present value.
5. If a project is mutually exclusive, choose the project that provides the biggest net present value.

Which of the statements above related to net present value technique are correct?

Which of the following term refers to a firm’s attribute that may allow the firm to generate economic profits?

1. Profitability index technique 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.
2. Profitability index technique assumes that all investment projects the same same level of risk.
3. If a project is independent, approve the project(s) that provides profitability index greater than 1.
4. If a project is mutually exclusive, choose the project that provides the biggest profitability index (which is also greater than 1).

Which of the statements above related to profitability index technique are correct?