Deneme Sınavı Soruları

1. Capital budgeting includes long-term decisions about non-current assets of a company.
2. Decisions about non-current assets need extra attention from managers because they are more expensive than the current assets.
3. The outcome of capital budgeting is either approval or rejection of the investment project.
4. In order to come to approval or rejection point, a financial manager needs analytical tools to make analysis.
5. There are a number of simple and sophisticated analytical tools that managers use for project analysis.
6. Main consideration is “return and risk” and “benefit and cost” of each project proposal.
7. In the end, if a financial manager approves an investment project, we can assume that he/she thinks that returns/benefits from the project will be greater than the associated risks/costs.

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

What is the return on invested capital (ROIC) if EBIT is $400,000, capital is $1,400,000 and tax rate is %40?

XYZ Corp. borrows $50,000 as a bank loan at an annual interest rate of %8. The company pays 25% corporate tax rate. What is the after-tax rate of borrowing for XYZ Corp.?

"Asymmetric information occurs ........................."

Which of the following is not one of the factors affecting the business risk of a firm?

Which of the following terms refers to the likelihood that a company will be unable to meet its debt obligations?

Which of the following options provide withdrawal of resources from a project failing to live up to short-run expectations?

Which of the following is the measure of sytematic risk of a stock?

Which of the following is true about "Agency Theory"?

What is the rate of interest paid on debt if the firm has a 25% tax rate, a 18% expected rate of return to equity holders, a 15% WACC, and a 50% debt-asset ratio?

What is the average cost of capital mix of debt and equity in financing decisions?

What happens when you  have  an  overdraft?

1. Desired Level of Leverage
2. Nature of the business
3. Size of the company
4. Legal requirements
5. Requirement of investors

Which of the above factors affect the cost of capital of a company?

1. Agency theory
2. Trade-off theory
3. Optimal capital theory
4. Traditional approach
5. Net operating income approach

Which of the above are among the capital structure theories?

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

1. Strategy refers to formulation and implementation of a company’s key decisions.
2. Corporate strategy refers to strategies for company’s whole portfolio of resources, and strategies for business unit’s products, as well.
3. Competitive advantage refers to a firm’s attribute that may allow the firm to generate economic profits.
4. Economic profit refers to the risk-adjusted present value of revenue minus all costs, including the opportunity cost of capital.

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

Which one of the following is the first step of calculating the Net Present Value?

Which of the following is not one of the factors affecting the business risk of a firm?

The return of the market in excess of the risk-free rate is referred to as .............