All MCQs Tests - VU FIN622 - Corporate Finance

Question 1: If the Internal Rates of Return of two, mutually exclusive options are both greater than the cost of capital, which option should be selected under the Internal Rate of Return method?

Question 2: Which of the following is included in the cost of capital of a firm?

Question 3: Which of the following is the Dividend Payout ratio for a common stock?

Question 4: A Company's common stock is currently selling at Rs.3.00 per share, its quarterly dividend is Rs.0.07, and the stock is expected to rise to Rs.3.30 in a year. What is its expected rate of return?

Question 5: Which of the following is a measure of risk of an asset?

Question 6: Which of the following is tax deductible?

Question 7: A risk free asset has a Beta value equal to

Question 8: In which of the following dividend policy, the amount of dividend is relatively fixed?

Question 9: If an investor buys a non-zero coupon bond and holds it to maturity, then the rate of return she will receive depends on:

Question 10: Suppose you invested Rs. 8,000 in a savings account paying 5 percent interest a year, compounded annually. How much amount your account will have at the end the end of four years?