Question No: 1 ( Marks: 1 ) - Please choose one
A major disadvantage of the corporate form of organization is the ______________.
.
Inability of the firm to raise large sums of additional capital
.
Double taxation of dividends
.
Limited liability of shareholders
.
Limited life of the corporate firm
Question No: 2 ( Marks: 1 ) - Please choose one
Which one of the following current asset is not treated as a cash flow from operating activities?
.
Trade receivable
.
Cash and cash equivalent
.
Inventory
.
Short term investment
Question No: 3 ( Marks: 1 ) - Please choose one
Suppose you can earn a 7.2 percent interest rate per year. According to the rule of 72, it will take
approximately ___________ years to double your money.
.
5.00
.
7.20
.
10.00
.
100.0
Question No: 4 ( Marks: 1 ) - Please choose one
Rahim Corporation has a cash coverage ratio of 7 times. It’s earning before interest and tax is
Rs.900 million. It has total assets of Rs.3 billion. The company has a policy of charging 5 % annual
depreciation. By using the above information, what would be the interest expense for the year?
.
90 million
.
120 million
.
140 million
.
150 million
Question No: 5 ( Marks: 1 ) - Please choose one
Suppose ZM Corporation has a debt to equity ratio of 1.50 times. It has the return on assets of
14%. The return on equity would be ____________.
. 25%
.
30%
.
35%
.
40%
Question No: 6 ( Marks: 1 ) - Please choose one
Lets Tulips Corporation has return on assets for the year is 14 % .The Corporation has a policy to
retain 40 percent of their income. Then the Corporations internal growth rate would be
___________.
.
5.246 %
.
5.754 %
.
5.932 %
.
6.589 %
Question No: 7 ( Marks: 1 ) - Please choose one
If the interest rate is 24 % compounded quarterly, what would be the 5-year discount factor?
.
3.10585
.
3.20714
.
3.50152
.
3.80153
Question No: 8 ( Marks: 1 ) - Please choose one
Suppose you expect to receive Rs.3,000 per year forever. The opportunity rate is 12 %.The present
value of this would be ______________.
.
Rs.20,000
.
Rs.23,000
.
Rs.25,000
.
Rs.28,000
Question No: 9 ( Marks: 1 ) - Please choose one
The bonds are classified as ___________ if the maturity of the bond is less than 10 years when
issued.
.
Term finance certificate
.
Debentures
.
Notes
.
None of the given options
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