Finance Mcqs

Submitted By: Ali Uppal


Variability for expected returns for projects is classified as___________?

(A) Expected risk

(B) Stand-alone risk

(C) Variable risk

(D) Returning risk

Submitted By: Ali Uppal


Method uses for an estimation of cost of equity is classified as___________?

(A) Market cash flow

(B) Future cash flow method

(C) Discounted cash flow method

(D) Present cash flow method

Submitted By: Ali Uppal


In weighted average capital, capital structure weights estimation does not rely on value of__________?

(A) Investors equity

(B) Market value of equity

(C) Book value of equity

(D) Stock equity

Submitted By: Ali Uppal


Beta which is estimated as regression slope coefficient is classified as___________?

(A) Historical beta

(B) Market beta

(C) Coefficient beta

(D) Riskier beta

Submitted By: Ali Uppal


Risk free rate is subtracted from expected market return is considered as___________?

(A) Country risk

(B) Diversifiable risk

(C) Equity risk premium

(D) Market risk premium

Submitted By: Ali Uppal


Rate of return which is required to satisfy stockholders and debt holders is classified as__________?

(A) Weighted average cost of interest

(B) Weighted average cost of capital

(C) Weighted average salvage value

(D) Mean cost of capital

Submitted By: Ali Uppal


In cash flow estimation and risk analysis, real rate will be equal to nominal rate if there is__________?

(A) No inflation

(B) High inflation

(C) No transactions

(D) No acceleration

Submitted By: Ali Uppal


Weighted average cost of debt, preferred stock and common equity is classified as_____________?

(A) Cost of salvage

(B) Cost of interest

(C) Cost of taxation

(D) Cost of capital

Submitted By: Ali Uppal


In cash flow estimation, depreciation shelters company’s income from_______?

(A) Expansion

(B) Salvages

(C) Taxation

(D) Discounts

Submitted By: Ali Uppal