kai ap question is website se copy kar re...?

http://global.oup.com/uk/orc/busecon...1student/mcqs/


aur kai ap ko pata tha is website ka to share kunn ni ki?

main na to abi just aik question copy kar k google par search kiya to is website ka pata chala......

hmmmmmmmmmm u r right ..

http://global.oup.com/uk/orc/busecon...1student/mcqs/

sab idr se copy paste hua ha.........

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[QUOTE=Manzar baloch;972928]In my opinion it is (c) because when we assign latest value to stock (which will be higher in case of inflation because of recent purchases), Cost of goods sold will be higher which will result in lower profit.

Any comments on it will be highly appreciated...

these questions i copied from the website shared by one of the members. the highlighted options are the right answers according to the site.


1. Which of these activities does not exclusively come within the scope of corporate financial decision-making?
a) How much should be invested?
b) [B]How much is to be allocated to the marketing budget?[/B]
c) Which type of finance should be chosen?
d) How much finance should be raised?
2. Which of the following is a legitimate reason why firm value maximization is preferred to profit maximization as the ideal goal for the firm?
a) Value takes account of both profit and cash flow.
b) Value or discounted cash flow is less ambiguous than profit.
c) Value takes account of depreciation.
d) Profit is too concerned with the longer term.
3. What is the Grameen bank?
a) A US investment bank dealing in CDOs.
b) A Bangladeshi bank specializing in microfinance.
c) A Japanese bank specializing in Forex trading.
d) A British hedge fund.

4. If I0 stands for the initial investment at time 0, C1 - for cash flow after one year, and r - for the rate of interest, then the net present value (NPV) for 1 period is given by the following formula:
a) NPV= -I0+ C1/1+R power n
b)
c)
d)

5. Which investment will be characterized by the highest monetary return at the end of the investment horizon? Assume annual compounding.
a) 5 years at the interest rate of 5% per year.
b) 7 years at the interest rate of 3% per year.
c) 4 years at the interest rate of 9% per year.
d) 2 years at the interest rate of 6% per year.
6. Which of the following is not true with respect to the Accounting Rate of Return (ARR)?
a) It is based on accounting concepts such as accounting profit and depreciation.
b) It takes account of the time value of money.
c) The hurdle rate is arbitrary.
d) The definition of both profit and capital can be somewhat arbitrary and variable.
7. Which of the following is not a criticism of payback?
a) It ignores potentially valuable cash flow after the cut-off point.
b) The cut-off point for recovery of investment outlay is arbitrary.
c) The technique cannot be adapted to discounted cash flow
d) It may help to resolve large amounts of uncertainty.
8. Which of the following is not a characteristic of a preference share?
a) Ranks last for payment in the event of company liquidation.
b) Unpaid dividend accrues until it can be paid.
c) Do not usually have voting rights unless dividends fall into arrears.
d) It is more like debt than a share in its characteristics.
9. Which of the following is not a money market instrument?
a) Bonds.
b) Treasury bills.
c) Certificates of deposit (CDs).
d) Commercial paper (CP).
10. What is the value of a 6%, five year bond with annual coupons and face value equal to £1,000, if the current yield to maturity is 6%?
a) £1,089
b) £920
c) £1,200
d) £1,000
11. As which type of cash flow is an equity share usually valued?
a) An annuity cash flow.
b) A risk-free cash flow.
c) A perpetuity cash flow.
d) An erratic cash flow.
12. Which of the following represents the correct formula for valuing a share with a growing dividend?
a) Pt = d0 × (1 - g)/(r - g)
b) Pt = d0 × (1 + g)/(r + g)
c) Pt = d0 × (1 + g)/(r - g)
d) Pt = d1 × (1 + g)/(r - g)
13. What is the value of the firm usually based on?
a) The value of debt and equity.
b) The value of equity.
c) The value of debt.
d) The value of assets plus liabilities.
14. Volatility risk of a single asset is usually measured by which of the following?
a) Standard deviation.
b) Variance.
c) Correlation.
d) Covariance
15. The sum of squared deviations from the mean, multiplied by probability, describes which of the following?
a) Standard deviation.
b) Variance.
c) Correlation.
d) Covariance.

16. Which of the following describes purchasing power parity (PPP)?
a) A theory of the exchange rate in which equilibrium is not possible because of excessive Forex volatility.
b) An equilibrium theory in which Forex currency rates change to accommodate changes in relative prices.
c) An equilibrium theory in which Forex currency rates change to accommodate changes in interest rates.
d) An equilibrium theory in which Forex currency rates change to accommodate changes in trade and capital flows.
17. Which of the following would not be counted as part of incremental cash flow?
a) Opportunity cost.
b) Sunk cost.
c) External cost such as brand cannibalism.
d) External benefit such as acquisition of new technology which can be applied to other projects.
18. What is the tax shield?
a) The tax shield is a benefit which accrues to companies which are able to channel their funds through tax havens.
b) The tax shield is the benefit which accrues to firms which are located in special enterprise areas.
c) The tax shield is the phenomenon whereby allowable expenses such as interest and depreciation reduce taxable profit.
d) The tax shield allows initial capital expenditure to be offset against tax, when calculating taxable profit.
19. In terms of relative risk, which of the following is true?
a) Debt is risky for investors while equity is risky for the firm.
b) Both are equally risky for investors.
c) Both are equally risky for the firm.
d) Debt is risky for the firm while equity is risky for the investor.
20. In a simple perfect capital market, what happens if dividends are delayed?
a) Share price goes up.
b) It is impossible to know.
c) Share price goes down.
d) Share price remains the same.

21. Which of the following is not a metric to use for measuring the length of the cash cycle?
a) Acid test days.
b) Accounts receivable days.
c) Accounts payable days.
d) Inventory days.

22. Constitution after 9 years
23. Peninsula
24. 2-3% forest land

[QUOTE=sami691;973494]stock is valued on cost while profit is calculated on selling price hence stock price would be fixed while selling price would be high due to inflation so option d is correct

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