Final Sınavı - Busıness Fınance I

Soru 1:

[(1+ nominal interestrate)/(1+ Inflation rate)] -1 What will the equation give us?

A) Nominal interest rates B) Yield curve C) Return rate D) Risk rate E) Real interest rate

Soru 2:

Which of the following is true about Transaction Motive ?

A) Holding cash or near cash to meet routine cash requirements of a company to finance transactions in the normal course of business. B) Holding cash or near cash as a cushion to meet unexpected contingencies such as flood, strikes. C) The situations in which there occurs extra ordinary opportunities for the companies to quickly take advantage. D) In order to be able to utilize the cash discount provided by a supplier, certain amount of cash can be made available as a strategy. E) The length of time it takes the inventories are sold and the proceedings are collected in cash from customers.

Soru 3:

I. It is also named as matching policy. II. The fixed and permanent current assets are financed through long-term sources. III. It aims to minimize the risks associated with the financing of the current assets. Which of the statements above are true about Hedging Policy?

A) Only I B) I, II and III C) I and III D) I and II E) II and III

Soru 4:

Expected return of a portfolio is simply the weighted average of the returns of securities The variance of a portfolio is a function of the individual security return variances The variance of a portfolio is a function of the covariance between them There is a positive relationship with both the variances and covariance Similar to the calculation of standard deviation of a single security, the square root of the variance would be the standard deviation of the portfolio How many of the above statements are true?

A) 1 B) 2 C) 3 D) 4 E) 5

Soru 5:

Suppose that you are planning to invest in a stock that will pay $8 as dividend and its price will be $250 next year. Assume that this stock is correctly priced in the market and its market price is $245. What is the expected rate of return?

A) %5.3 B) %4.6 C) %3.5 D) %6.4 E) %5

Soru 6:

Even though coupon interest rates are fixed, bond values still fluctuate with the changes in market interest rates. Which one of the following is the main reason for this?

A) calculation errors B) fluctuations on the interest rate in the market C) market failures D) transaction fees E) intermediation commissions

Soru 7:

Historically, which of the following investments has provided the smallest average return?

A) Treasury bills B) Treasury bonds C) Corporate bonds D) Small company stocks E) Large company stocks

Soru 8:

1. The risk-free return is the return on securities that always yield their expected returns, regardless of the economic environment 2. The risk free return is usually approximated with the returns from very short-term government securities 3. The risk-free asset has variability in zero variance and zero correlation and covariance with any asset 4. The Capital Market Line (CML) is the line that connects the risk-free asset with the risk free rate Which of the above statements are turue?

A) 1 and 2 B) 1 and 3 C) 2 and 3 D) 3 and 4 E) 1 and 4

Soru 9:

"Higher activity level, larger amount of production, inventory, sales, ending up with higher amounts of raw materials and suppliers credits." is about ____________which is one of the factors affecting the level of working capital.

A) Nature of business B) Inventory level for raw materials C) Volume of business D) Length of period of manufacture E) Use of manuel labor

Soru 10:

Coupon payments are the periodic payments received by bondholders until the bond matures. The annual coupon payment is equal to the coupon rate times the par value of the bond. Some bonds pay their coupons in more than one payment per year, such as semi-annually or quarterly. The coupon rate and maturity date are specified in bond’s indenture. The indenture is a contract between issuer and bondholder specifying the characteristics of the bond. Which of the statements above about bonds are correct?

A) I and II B) I and V C) I, II and III D) I, II, III and V E) II, III, IV and V

Soru 11:

Which of the following is one of the liabilities in working capital?

A) sundry creditor B) sundry debtors C) prepaid expenses D) cash in hand E) cash in banks

Soru 12:

Which of the following is not amongst the data set of financial planning?

A) Short and long term profit target B) Divisional financial report C) Internal control report D) Labor productivity report E) Worst Case Scenario

Soru 13:

In vertical (or common size analysis), the items in the financial statements are expressed as a percentage of total .......(1)or .......(2). Which are the terms (1) and (2) completing the sentence?

A) Assets-Sales B) Assets-Liabilities C) Liabilities-Equity D) Net Income-Equity E) Current Assets_Current Liabilities

Soru 14:

Which of the following statements about Beta is wrong?

A) If Beta>1, the security has above average risk and returns are expected to be more extreme and in the same direction as the market B) If Beta=1, the security has average risk and returns are expected to be similar to the market C) If 1>Beta>0, the security has above average risk and returns are expected to be more extreme and in the same direction as the market D) If Beta=0, the security has below average risk E) If Beta<0, security has very low risk and returns are expected to move in opposite direction with the market

Soru 15:

Which of the followings is a method used for cash budget preparation?

A) Combined method B) Regression method C) Special purpose method D) Managerial assessment method E) Adjusted net profit method

Soru 16:

I. There exist three time horizons. II.. Short term is specified as maximum 12 months. III. One of the first tasks is to determine total investment amount by bringing together all the approved projects of the individual divisions. Which one/ones above is/are correct about the dimensions of financial planning?

A) Only I B) I-II C) I-III D) II-III E) I-II-III

Soru 17:

I. Transaction cost II. Cash holding cost III. Total cash required Which of these can be a component of Baumol's optimum cash balance formula?

A) I only B) II only C) I and III only D) II and III only E) I, II and III

Soru 18:

Suppose you can save ₺1,500 each month for the next 10 years in a retirement found. What would be the ending amount when you retire if the interest rate is 12%?

A) ₺314,251 B) ₺325,247 C) ₺336,923 D) ₺345,058 E) 359,206

Soru 19:

In an efficient market, prices .... reflect .... available information. Which of the word pairs below does correctly fill the blanks in the sentence given above?

A) semi - some B) partly - all C) fully - some D) does not - all E) fully - all

Soru 20:

Which of the following is the term for the stocks of the companies that are using their profits and cash flows to support its investments, and as a result do not have resources to pay dividends.

A) Income Stocks B) Penny Stocks C) Blue-Chip Stocks D) Growth Stocks E) Preferred Stocks