Deneme Sınavı Soruları

Which of the following is not a true classification of the factors affecting the capital structure?

1. Debt Issuance
2. Equity Finance
3. Securitization
4. Retained Earning
5. Depreciation

Which of the above are internal sources which provide financing to the corporate?

XYZ Corp. borrows $100,000 as a bank loan at an annual interest rate of 5%. The company pays 30% corporate tax rate. What is the after-tax rate of borrowing for XYZ Corp.?

1. Capital markets are perfect with rational investors that can freely buy and sell assets.
2. Investors have homogenous expectations.
3. There are no bankruptcy costs.
4. There are no taxes.
5. There are no transaction costs in financial asset trading.

Which are among the assumptions is Modigliani and Miller Capital Structure Theory based on?

I.   Capital Expenditures

II.  Net working capital + other uses

III. Short-term debt

IV.  Internal Cash Flow (Retained earnings + Depreciation)

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

When debt and equity are considered, which of the followings is correct?

Given the information below, compute the WACC for XYZ Corporation.

Shareholders Equity= TL 250,000

Cost of equity = 17% 

Total Assets= TL 750,000

Cost of debt = 14%

Tax rate = 20%

1. A simple approach to incorporate risk differences among alternative investment projects to evaluation process is making adjustments to either cash flows or the discount rate according to the risk of the projects.
2. One can account for risk differences among alternative investment projects by making adjustments to either cash flows or the discount rate.
3. Certainty-equivalent coefficient refers to a number between 0 and 1 which is used in order to reflect the risk of a project to evaluation.
4. In adjusted cash flow approach, one should use risk-free interest rate as a discount rate while calculating net present value because risk of a project is already included in cash flow adjustment.
5. If a project’s risk is substantially above the firm’s general risk, discount rate will be above the weighted average cost of capital.
6. If a project’s risk is substantially below the firm’s general risk, discount rate will be below the weighted average cost of capital.
7. For a given capital investment project, it would be appropriate to expect that a manager who is risk-averse adds a greater risk premium to discount rate than a manager who is risk-seeking.

Which of the statements above related to incorporating risk in capital budgeting are correct?

Which one of the following is an intermediate model, compromising between the net income approach and the net operating income approach?

1. Modified internal rate of return technique finds the rate of return that equates the future value of all cash outflows with the sum of the future value of all cash inflows as of the end of the project’s life.
2. Terminal value refers to the sum of the future value of all cash inflows as of the end of the project’s life.
3. If a project is independent approve the project(s) that provides MIRR that is greater than the minimum rate of return (discount rate used in NPV technique).
4. If a project is mutually exclusive, choose the project that provides the highest MIRR (that is greater than the minimum rate of return (discount rate used in NPV technique)).

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

How do bank fees work?

What is the name of the account managed by the bond trustee for the purpose of repaying the bonds?

"Bankruptcy risk................."

Which of the following best completes the sentence above?

The right which allows current shareholders to purchase their proportionate number of shares in any new stock offering in order to maintain their ownership in the company is referred to as .......

Which stakeholders have the highest priority in terms of claims on the income of the company?

According to the Trade-off Theory of capital structure theories, what does financial distress or bankruptcy costs refrain firms from?

If a company borrows 250.000 tl as a bank loan at an annual interest rate % 8. The company pays % 25 corporate tax rate. What will be the after-tax rate of borrowing for this company.