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BAFM6102 - Midterm Quiz 1 - Attempt Review

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Kinglaw Pilande
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0% found this document useful (0 votes)
67 views4 pages

BAFM6102 - Midterm Quiz 1 - Attempt Review

Uploaded by

Kinglaw Pilande
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 4

Started on Monday, 26 September 2022, 9:21 PM

State Finished
Completed on Monday, 26 September 2022, 9:29 PM
Time taken 8 mins 32 secs
Marks 10.00/10.00
Grade 100.00 out of 100.00

Question 1

Correct

Mark 1.00 out of 1.00

Which of the following does not belong to the group?

Select one:
a. net operating income approach
b. Intermediate Approach
c. Net Income approach
d. Modigliani and Miller Approach

Question 2

Correct

Mark 1.00 out of 1.00

This is the required rate of return on the various types of financing.

Select one:
a. Cost of capital
b. Return on debt
c. Total return
d. Cost of debt

Question 3

Correct

Mark 1.00 out of 1.00

If you have a financial source that is required to be paid within ten years, this describes

Select one:
a. Short-term source
b. Medium-term source
c. Long-term source
d. Perpetual source
Question 4

Correct

Mark 1.00 out of 1.00

This is the required return on investment of the lenders of a company.

Select one:
a. Return on debt
b. Cost of debt
c. Cost of capital
d. Total return

Question 5

Correct

Mark 1.00 out of 1.00

This is the use of various financial instruments or borrowed capital, such as margin, to increase the potential return of an investment.

Select one:
a. leverage
b. efficiency
c. capital efficiency
d. efficacy

Question 6

Correct

Mark 1.00 out of 1.00

These funds are obtained from banks and credit unions

Select one:
a. borrowed funds
b. Short-term source
c. Owner's funds
d. Long-term source
Question 7

Correct

Mark 1.00 out of 1.00

This is the process in which a business determines and evaluates potential expenses or investments that are large in nature.

Select one:
a. Capital Budgeting
b. Financial Capital
c. Investment-expense Analysis
d. Monetary Management

Question 8

Correct

Mark 1.00 out of 1.00

This is the required return on investment of the preferred shareholders of the company.

Select one:
a. Cost of preference share
b. Cost of capital
c. Return on Investment
d. Return on Preference share

Question 9

Correct

Mark 1.00 out of 1.00

Which is not a part of capital budgeting process?

Select one:
a. Performance Review
b. Screening proposals
c. Observation of proposal making
d. Fixing property
Question 10

Correct

Mark 1.00 out of 1.00

FLP Company has  1000 existing common shares.  The market value of the share is  Php 90 and the net earnings is Php 1,000.  What is the cost
of Capital assuming that the new shares will be issued at market price?

Select one:
a. 1.11%
b. 0.11%
c. 0.01%
d. 11.11%

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