Deneme Sınavı Soruları

I. Short-term debt,

II. Long-term debt,

III. Depreciation,

IV. Retained earnings.

Which of the ones listed above is among the internal cash flow?

Which capital budgeting evaluation technique finds the sum of present value of all cash inflows and cash outflows of a project over its life?

A company has a budget of $50,000 for expansion projects. There are three projects such as A, B and C. If Projects A and B each cost $40,000, and Project C costs only $10,000, which of the following investment type explains the dependence of Project C?

Which of the following is the effect of the present value of the delayed capital expenditure of future cost savings in real options?

Which of the following is not one of the assumptions of Modigliani and Merton Miller Capital Structure Theory?

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.?

.... is an indicator of financial risk and occurs in case of borrowing.

Which one of the following completes the sentence above?

What do we call  the mix of debt and equity that maximizes the value of the firm?

1. Profitability risks
2. Market risks
3. Within-firm risks
4. Stand-alone risks

Which of the above are the kinds of risk sources of an investment project?

1. No fixed dividend payment obligation
2. Irredeemable
3. Obstacles in Managemeent
4. Limited Income to Investor
5. Loss of Leverage Contributions

Which of the above are disadvantages of common stock?

1. There are two very important items that are related to the estimation of investment projects’ cash flows: financing costs and depreciation.
2. Financing costs are irrelevant cash flows to capital investment project evaluation which should not be included in the analysis.
3. Financing costs are incorporated in the capital budgeting analysis with the determination of discount rate, rather than with the estimation of cash flows.
4. Depreciation is considered as a relevant cash flow to capital investment project evaluation which should be included in the analysis.
5. A project’s cash flow is equal to net income of project plus depreciation.

Which of the statements above related to the estimation of investment projects’ cash flows are correct?

Which one of the following refers to all kinds of spendings made to acquire, sustain, and increase production factors?

What is long term financing?

Which of the following term refers to the sum of present value of all cash inflaws and cash outflows of a project over its life?

Which of the following cannot be claimed to be a result of financial distress?

I.  Long-term debt and equity

II.  Short-term debt

III. Net working capital + other uses

IV.  Internal Cash Flow (Retained earnings + Depreciation)

Which of the above are among the "sources of cash flow"?

I. Dept

II. Equity

III. Goods

Which of above is/are included in cost of the capital mix?

ABC Corp. recently issued preferred stocks for raising additional $200,000 of equity funds. Investors bought each share paying a price of $100, however ABC had to incur 5% flotation costs on the preferred stock issue. The preferred dividends are $10 per share. What is the return of the preferred stockholders?