Nominal interest rates and nominal cash flows are usually reflected the____________?
(A) Inflation effects
(B) Opportunity effects
(C) Equity effects
(D) Debt effects
Relevant cash flow which company expects when its will implement project is classified as_____________?
(A) Irrelevant cash flow
(B) Relevant cash flow
(C) Incremental cash flow
(D) Decrease cash flow
Cash flows that could be generated from an owned asset by company but not use in project are classified as_________________?
(A) Occurred cost
(B) Mean cost
(C) Opportunity costs
(D) Weighted cost
If default probability is zero and bond is not called, then yield to maturity is_____________?
(A) Mature expected return rate
(B) Lower than expected return rate
(C) Higher than expected return rate
(D) Equal to expected return rate
Required rate of return in calculating bond’s cash flow is also classified as_______?
(A) Going rate of return
(B) Yield
(C) Earning rate
(D) Both A and B
Right held with corporations to call issued bonds for redemption is considered as___________?
(A) Artificial provision
(B) Call provision
(C) Redeem provision
(D) Original provision
If stock market price is higher than strike price so call option____________?
(A) Price will be lower
(B) Rate will be higher
(C) Price will be higher
(D) Rate will be lower
Current option price is added to present value of portfolio for calculating_________?
(A) Future value of portfolio
(B) Current value of stock
(C) Future value of stock
(D) Present value of portfolio
Rate of required return by debt holders is used for estimation the__________?
(A) Cost of debt
(B) Cost of equity
(C) Cost of internal capital
(D) Cost of reserve assets
In retention growth model, payout ratio is subtracted from one to calculate___________?
(A) Present value ratio
(B) Future value ratio
(C) Retention ratio
(D) Growth ratio