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Assignment 4-WPS Office

This document provides a quiz with multiple choice questions about finance concepts such as net present value, internal rate of return, equity, discounting, annuities, and debt-equity ratios. It includes 11 questions with potential answers to choose from for each. The due date for an assignment is listed as August 28, 2019.

Uploaded by

Chirag Sabhaya
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Download as DOC, PDF, TXT or read online on Scribd
206 views

Assignment 4-WPS Office

This document provides a quiz with multiple choice questions about finance concepts such as net present value, internal rate of return, equity, discounting, annuities, and debt-equity ratios. It includes 11 questions with potential answers to choose from for each. The due date for an assignment is listed as August 28, 2019.

Uploaded by

Chirag Sabhaya
Copyright
© © All Rights Reserved
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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Assignment 4

Due date: 2019-08-28, 23:59 IST.

Assignment not submitted

1 point

______________________________ is the discounting rate, which delivers a Net Present Value equal to
zero?

ARR

IRR

NPV

Profitability Index

1 point

Which of the following is not true about equity?

Equity shareholders have residual claim over income of the firm

Equity has fixed maturity

Equity investors enjoy control over affairs of firm

Dividend paid to equity shareholders is non-taxable.

1 point

___________________________ is the expected returns per unit of period over the life of the project or
investment.

Discount Factor

Inflation Factor

Return Factor

Revenue Factor

1 point

In annuity payment the duration between two payments is ___________.

Fixed
Varying

May vary or fixed depending upon situation

None of the above

1 point

Discounting techniques takes _______________ into account?

Inflation

Time value of money

Discount received

Profit

1 point

Which of the following is not true about Net present Value (NPV)?

It considers all cash flows

It considers time value of money

It considers risk factors

It allows expected changes in cost of capital

1 point

Which of the following is not a survey evaluation technique?

Internal rate of return

Payback period

Mean absolute deviation

Profitability index

1 point

Who are the owners of a company?

Creditors

Equity Shareholders
Managers

Debenture holders

1 point

Which of the following is not a key factor for determining debt-equity ratio for a project?

Cost

Nature of assets

Business risk

Price elasticity

1 point

Mr X wants to receive 120,000 every year for next 10 years (starting from next year from now). How
much money should he deposit now?

The interest rate is 10%.

637400

737400

837400

937400

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