The mix of debt and equity in a firm is referred to as the firm’s ??
a) primary capital b) capital composition c) cost of capital d) capital structure
Financial Management MCQs. Multiple Choice Questions on the topic of Finance and Financial Management.
Which of the following are not among the daily activities of financial management ??
a) sale of stocks and bonds b) credit management c) inventory control d) the receipt and disbursement of funds
Which of the following constitutes an internal source of funds ??
a) corporate bonds b) common stock c) commercial paper d) retained earnings and amortization cash flow
When the coupon rate on a bond is equal to the yield to maturity the price of the bond will be ??
a) par b) above par c) below par d) more information is required
The least expensive form of financing for the firm is ??
a) existing common stock b) preferred stock c) debt d) new common stock
Annuity payments are generally assumed to occur ??
a) during the period b) at the beginning of the period c) at the end of the period d) it doesn't matter when they occur
The allocation of capital is determined by ??
a) expected rates of return b) the Bank of Canada c) the initial sale of securities in the primary market d) the size of the federal debt
The valuation of a financial asset is based on determining ??
a) the present value of future cash flows b) the current yield to maturity on long term corporate bonds c) the capital budgeting process d) what the corporation is paying…
The cost of retained earnings is equal to ??
a) the return on new common stock b) the return on preferred stock c) the return on existing common stock d) It does not have a cost
To determine the price of preferred stock ??
a) divide the rate of return by the dividend amount b) divide the dividend amount by the rate of return c) divide the dividend amount by the rate of return…