New Click here to Enroll in NaBFID Analyst Intro Class on May 6

Practice Alternate Sources of Finance Questions and Answers

An investor will most likely exercise a put option when the price of the stock is:
Which of the following would not be a good reason for a company to repurchase shares of its own stock?
A measure of how the returns of two risky assets move in relation to each other is the:
The expected return on the stock is 15%, the risk-free rate is 8% and the beta for the stock is 1.2. Compute the rate of return that would be expected on t...
What is the risk measure associated with the Capital Market Line (CML)?
RSP Ltd has a net profit margin of 12% and a total asset turnover of 1.2 times and a financial leverage multiplier of 1.2 times. RSP Ltd’s return on equi...
In a period of rising prices and stable inventory quantities, which of the following best describes the effect on gross profit of using LIFO as compared to...
For the current period, inappropriate capitalization is most likely to:
Which of the following is least likely a condition necessary for revenue recognition?
Which of the following is most likely an essential characteristic of an asset?
Which of the following ratios are used to measure a firm’s liquidity and solvency?
The group into which business activities are classified for financial reporting of cash flow statement are:
With respect to the futures transactions, the purpose of margin is to ________
A risk-averse investor is best described as an individual as __________
ABC Ltd has made purchases of Rs.100,000 during the year. The balance sheet shows an average accounts payable balance of Rs12,000. ABC Ltd payable payment ...
Jay Ltd sells units for Rs 4/bottle. The variable cost for the unit per bottle is Rs.2 and has a fixed operating cost of Rs 4000 and a fixed financing cost...
Compared to investing in a single security, diversification provides investors a way to _______
Determine the debt-equity ratio of XYZ Ltd Debt outstanding = 800,000 Equity capital = 1000,000 Share reserves = 100,000
According to CAPM (Capital Asset Pricing Model), what is the required rate of return for a stock with a beta of 0.7 when the risk-free rate is 5% and the e...
The value stated on a bond certificate is called ______
A company’s 1000 par preferred stock pays a Rs 50 annual dividend and has a required rate of return of 8%. Calculate the value of the preferred stock ...
The stage of venture capital investing that involves product development and market research is referred to as ___________
A company fails to accrue wages for March that will be paid in April. The company’s year-end balance sheet liabilities:
An agreement sold over an exchange to buy/sell a commodity or financial instrument at a designated future date is known as:
Investing cash flows most likely reflect changes in which of the balance sheets’ components?
Risk of losses caused by flaw in the process, events, systems etc that disrupt the business operations is called:
ACB Ltd Financial Statement for 2021 include the following information: There was no sales of property and equipment in the year, depreciation expense...
A rate at which RBI (Reserve Bank of India) lends to commercial banks by purchasing securities is know as ______
Which reference rate is likely to get scrapped completely by the end of year 2021?
During 2021, ZXC Ltd reported a net income of Rs115,600 and had 200,000 shares of common stock and 1000 preferred stock outstanding for the entire year. Pr...
Issuing bonds by a company would be considered in which activity in a cash flow statement?
Which of the following are Financial Analysis Techniques?
The discount rate that makes the present value of expected cash flows from the project equal to the initial cost of the project is called:
Which of the following most likely increases the wealth of shareholders?
Compute the payoff to a long position in a forward contract given that the forward price is Rs 35 and the price at maturity is Rs 55.
For which type of bond, duration of a bond would be equal to its time to maturity
An option that can be exercised only at expiration is called ____
Mr. X bought a bond at 1000 at a 10% coupon rate. But he intends to sell the bond after a year to Mr. Y. Mr. Y purchased the bond at 986. At the end of the...
Bonds with original maturities of one year or less are called:
In a repurchase agreement, the percentage difference between the repurchase price and amount borrowed is equal to:

More Topics

Today's Class

There is no live class for today.