Deneme Sınavı Soruları

1. Classical Loans
2. Revolving Credits
3. Bank Overdraft
4. Project Loans
5. Syndication Loans

Which of the above are the loans which are based on the same principle?

Which of the following sentence defined as managerial discretion may convey signals to outside investors other than the decisions on the surface?

What is the 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?

1. Identifying potential investments
2. Analyzing the set of investment opportunities
3. Implementing and monitoring the selected investment projects
4. Sustaining generation of the expected cash flow

Which of the above are the basic steps of capital budgeting process?

X Corp.'s capital structure consist of %40 long-term dept and %60 common equity. The interest rate on the corp.'s long-term dept is %12 and common shareholders are paid %18 on equity capital. If the tax rate of the corp. is %25, what would be the WACC for the corp.?

At which rate does the present value of cash inflows equal the present value of cash outflows?

Which one of the following refer to the options of managers about capital investment projects which can be priced by using stock option-pricing methodologies?

Which type of bonds are issued in a foreign currency to the investors in the country?

1. It is easy to apply and easy to explain to non-financial personnel;
2. It focuses on cash flow, not accounting-based measures such as profit;
3. It accounts for the time value of money;
4. It adjusts for differences in risk across projects
5. It leads to higher firm value in any company (and higher stock prices in public firms)

What are the characteristics of an analytical tool which managers need to decide which investments to undertake?

ANT Corp. issues bonds to borrow $500,000 required for capital investments. The bonds have a face value of $1,000, pay 5% annual coupons and mature in 8 years. The bonds are sold at par; however, the company incurs flotation (commissions and fees) costs of 4% on the bond issue. ANT's tax rate is 35%.

What is the after-tax cost of the bond issue?

Whcih of the following analysis is likely to generate relatively more realistic results?

What does the sum of present value of all cash inflaws and cash outflows of a project over its life show?

1. This approach advocates that a firm can boost its value by lowering its WACC, which is possible by increasing financial leverage in its capital structure.
2. In this approach, it is assumed that the cost of debt is always less than the cost of equity and that the increase in the debt ratio does not lead to a change in the risk perception of the investors.
3. Both the cost of debt and equity remain constant no matter how heavily debt capital is induced to the capital structure of the firm.

Which of the capital structure theories is defined above?

1. In order to position the capital budgeting in business finance, it is essential to identify the relationships between capital budgeting, cost of capital, and capital structure.
2. A financial manager should consider a number of factors indicating whether a capital investment project has a positive effect on the firm value or not.
3. One of the most important factors is the cost of capital because it determines how capital investment projects will be financed, and how capital structure will be changed.
4. The cost of capital is used as a kind of measure or reference point to make an investment decision.
5. Expected rate of return from a capital investment project should at least be equal to the cost of capital.
6. If the cost of capital used in the evaluation is calculated wrong, then a financial manager may approve projects that should be rejected (overinvest), or may reject projects that should be approved (underinvest).

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

1. Capital budgeting activity is explained as a process consisting three basic steps.by Megginson et al.
2. These steps are “Identifying potential investments”, “Analyzing the set of investment opportunities, isolating those that will create shareholder value, and prioritizing them if necessary” and “Implementing and monitoring the investment projects selected”.
3. If management does not spend enough effort to identify good investments, it will be pointless to analyze and prioritize projects because the outcome will not provide enough return regardless of the project evaluation techniques used.
4. If management does not work enough on controlling and monitoring the projects, all money, time and effort spent on project evaluation will be wasted because without good monitoring, a project cannot sustain generating cash flows as expected in the first place.

Which of the statements above related to capital budgeting activity are correct?

Which of the following are the type of projects in which selecting one project prevents other projects from being undertaken?

I. retained earnings

II. short-term borrowings

III. long-term debt

IV. depreciation

V. equity finance

Which of the cash sources above are used to generate funds for internal cash flows?

What is the average cost of the mix of debt and equity?