Q.1
Which of the following is the expression for operating leverage?
Q.2
The material wealth of a society is equal to the sum of _________.
Q.3
Present value of future cash flows is divided by an initial cost of project to calculate
Q.4
If net present value is positive then profitability index will be
Q.5
Cash flows occurring with more than one change in sign of cash flow are classified as
Q.6
Degree of total leverage can be applied in measuring change in _________.
Q.7
Investors can normally afford to assume larger risks in the ____ phase of the life- cycle.
Q.8
Sum of discounted cash flows is best defined as
Q.9
Life that maximizes net present value of an asset is classified as
Q.10
Which of the following short term securities is inappropriate for an individual, desiring funds for financial emergencies?
Q.11
Operating Leverage is the response of changes in __________
Q.12
_______ is example of financial intermediaries.
Q.13
First step in calculation of net present value is to find out
Q.14
Situation in which one project is accepted while rejecting another project in comparison is classified as
Q.15
The measure of business risk is __________.
Q.16
__________ is the most important investment decision because it determines the risk-return characteristics of the portfolio.
Q.17
The value of EBIT at which EPS is equal to zero is known as ____________.
Q.18
If two independent projects having hurdle rate then both projects should
Q.19
Walters model on dividend policy assumes that.
Q.20
Project whose cash flows are sufficient to repay capital invested for rate of return then net present value will be
Q.21
Present value of future cash flows is Rs 2000 and an initial cost is Rs 1100 then profitability index will be
Q.22
Cash outflows are costs of project and are represented by
Q.23
In capital budgeting, two projects who have cost of capital as 12% is classified as
Q.24
Profitability index in capital budgeting is used for
Q.25
A point where profile of net present value crosses horizontal axis at plotted graph indicates project
Q.26
Modified rate of return and modified internal rate of return with exceed cost of capital if net present value is
Q.27
Payback period in which an expected cash flows are discounted with help of project cost of capital is classified as
Q.28
In alternative investments, constant cash flow stream is equal to initial cash flow stream in approach which is classified as
Q.29
Number of years forecasted to recover an original investment is classified as
Q.30
In capital budgeting, term of bond which has great sensitivity to interest rates is
Q.31
Process in which managers of company identify projects to add value is classified as
Q.32
In capital budgeting, number of non-normal cash flows have internal rate of returns are
Q.33
An internal rate of return in capital budgeting can be modified to make it representative of
Q.34
Situation in which firm limits expenditures on capital is classified as
Q.35
Other factors held constant, greater project liquidity is because of
Q.36
In calculation of internal rate of return, an assumption states that received cash flow from project must
Q.37
An uncovered cost at start of year is divided by full cash flow during recovery year then added in prior years to full recovery for calculating
Q.38
In cash flow analysis, two projects are compared by using common life is classified as
Q.39
Other factors held constant, but lesser project liquidity is because of
Q.40
In internal rate of returns, discount rate which forces net present values to become zero is classified as
Q.41
Projects which are mutually exclusive but different on scale of production or time of completion then the
Q.42
Graph which is plotted for projected net present value and capital rates is called
Q.43
In capital budgeting, a negative net present value results in
Q.44
A discount rate which equals to present value of TV to project cost present value is classified as
Q.45
Initial cost is Rs 5000 and probability index is 3.2 then present value of cash flows is
Q.46
A project which have one series of cash inflows and results in one or more cash outflows is classified as
Q.47
In capital budgeting, an internal rate of return of project is classified as its
Q.48
A modified internal rate of return is considered as present value of costs and is equal to
Q.49
Set of projects or set of investments usually maximize firm value is classified as
Q.50
An uncovered cost at start of year is Rs 300, full cash flow during recovery year is Rs 650 and prior years to full recovery is 4 then payback would be
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