Busıness Fınance II (ENG)
Deneme Sınavı Soruları
- 20 soru
- Cevap anahtarı açık: çöz, sonucunu gör
- 1
- This approach is an intermediate model, compromising between the net income approach and the net operating income approach.
- This approach assumes an optimal capital structure where the WACC is minimized and the value of the firm is maximized.
- The model suggests that up to a certain level of leverage, the use of debt financing reduces the WACC, but after that optimal level, the WACC escalates depressing the firm value.
Which capital structure theory model is defined above?
- 2
Which of the following is not a capital investment project analysis technique?
- 3
LDP Corp. has the following optimal capital structure: Long-term Debt 30%; Preferred Stocks 20%; Common Equity 50%. The interest rate on the company’s long-term borrowings is 8%. Preferred stockholders require 12% return on their investments and common shareholders are paid 15% on equity capital. The company has a tax rate of 35%.
What is the WACC for LDP Corp.?
- 4
Which of the following shows the correct order of the process of capital budgeting activity?
- 5How is the value of a firm measured?
- 6
ADF Corp. expects $500,000 in EBIT. If the cost of debt is 12% for $1,200,000 borrowing and the WACC is 16%, what is the value of equity for ADF Corp.?
- 7
Which of the following is an internal source of cash flow?
- 8
Which of the following equations is used to calculate the cost of the preferred stock?
- 9
Which of thefollowings is the type of loan which multple banks agree upon and undertake?
- 10
What is included in internal cash flow?
- 11
What is the average cost of capital mix of debt and equity in financing decisions?
- 12
- Real options analysis
- Scenario analysis
- Decision trees
- Sensitivity analysis
- Simulation analysis
Which of the above are used to measure a project’s risks coming from various sources rather than in general manner?
- 13
- 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.
- 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.
- 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.
- The cost of capital is used as a kind of measure or reference point to make an investment decision.
- Expected rate of return from a capital investment project should at least be equal to the cost of capital.
- 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?
- 14
Which of the followings is one of the internal alternatives for the companies to fund their investments?
- 15
XYZ Corp. distributes 70% of its net income as dividends. The firm’s ROE is 20% What is the expected growth rate?
- 16
XYZ Corp. has a historical beta of 0.9 and the expected market return is 8%, whereas the risk-free rate is 2%. What is the required return of the stockholders of XYZ?
- 17
Which of the following rate is the most used by banks borrowing from international bank loans at floating rates?
- 18
Which capital structure theory advocates that a firm can boost its value by lowering its WACC, which is possible by increasing financial leverage in its capital structure?
- 19
Which of the following options provide withdrawal of resources from a project failing to live up to short-run expectations?
- 20
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"?