Final Sınavı - Busıness Fınance I

Soru 1:

The earnings of a company for the first quarter of the year fell by 40%, however, the stock price did not change after the announcement. The general market was also flat during this period. Which of the following best explain the situation above?

A) The price didn’t change because the market was stable. B) The news were already priced in. C) Interest rates in the banks have increased. D) The firm beta equals to one E) The market was surprised by the announcement.

Soru 2:

Which one of the following is the most sensitive to changes in the market interest rates in general?

A) 1-year bond B) 3-year bond C) 5-year bond D) 10-year bond E) 15-year bond

Soru 3:

The main source of financing secured internally has been by means of ________. The major items or them are wages and taxes which in turn create obligations to payments to the employees and to the government.

A) Factoring B) Letter of credit C) Trade credit D) Accruals E) Working capital advance by commercial banks

Soru 4:

Yield-to-maturity is the average rate of return that will be earned on a bond if it is bought at the market price and held until it matures. Yield-to-maturity of a bond selling at par is equal to its coupon interest rate. For discount bonds, yield-to-maturity is greater than their coupon rate Yield-to-maturity of premium bonds is less than their coupon rate. Yield-to-maturity has two components: current yield (annual coupon/current bond price) and capital gains yield ((p 1 -p 0 )/p 0 ). Which of the statements above about yield-to-maturity are correct?

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

Soru 5:

There are many different types and methodologies, an accepted router to establish a financial control infrastructure within a company.Which of the following is not amongst of them?

A) Analysis of the Initial Situation B) Preparation of Forecasts and Simulations C) Detection of Deviations in the Basic Financial Statements D) Correction of Deviations E) The sales and proceeds

Soru 6:

Which of the following is the best option to complete the sentence below? ............... tells how much effort is required in order to produce goods and services.

A) Net income B) Interest rate C) Funding value D) Production value E) Customer value

Soru 7:

Which of the following is not about current assets at Working Capital?

A) Cash in Hand B) Cash in Banks C) Inventories D) Prepaid Expenses E) Prepaid Expenses

Soru 8:

................... bond investors face higher reinvestment rate risk and will have a disadvantage when market interest rates decline.

A) Short-term B) Long-term C) Premium D) Discount E) Government

Soru 9:

Which one of the following is not a component of the CVP equation?

A) Sale price B) Quantity C) Net profit D) Fixed cost E) Variable cost

Soru 10:

Which of the following is the value for correlation of two securities that creates the maximum diversification?

A) -100 B) -1 C) 0 D) 1 E) 100

Soru 11:

Which of the following is NOT one of the financial decisions that people make in their daily lives?

A) To lease or to buy a car? B) How much to spend on down payment for a house? C) Which bank to have a credit card? D) Which products to buy? E) Which major to choose at the university?

Soru 12:

In the situations where annual business budgets are prepared, the cash inflows and outflows are estimated by referring to the which subject below?

A) Cash profit B) Net profit C) The budgeted sales D) Labor E) Expenses

Soru 13:

...... is a methodological procedure of comparing two sets of related cash/bank accounts or records gathered from either internal systems or from the banks.

A) Cash/Bank Reconciliation B) Double Check C) Cash Position Report D) Miller-Orr Model E) Average Cash Balance

Soru 14:

Yield curve plots the relationship between bond yields and maturity. One can infer the future levels of interest rates by examining the shape of the yield curve. In general, yield curves are upward sloping because investors may require more yield to invest in long-term bonds. Prices of long-term bonds fluctuate more with the changes in interest rates. Downward sloping yield curve implies that short-term interest rates will increase in the future. Which of the statements above about yield curve are correct?

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

Soru 15:

If the sales revenues of a firm had increased compared to last year while the cost of sales had decreased, ____________________ must have _______________________.

A) Net Profit ; increased B) Net profit ; decreased C) Gross profit ; increased D) Gross profit ; decreased E) Net profit margin ; decreased

Soru 16:

Which of the followings is not one of the aspects that production budgets should address?

A) The cost figures to determine the cost per unit. B) The location of production. C) The plans for labor, machinery and equipments and service requirements. D) The timing of production of each product type. E) The future product lines of rival companies in the same industry.

Soru 17:

Which of the following sales forecast methods assumes that there exists a linear relation between sales volume as dependent variable and some other predetermined economic factors as independent variables?

A) Manegerial Assesment Mehod B) Industry Analysis Method C) Regression Method D) Product Analysis Method E) Fuzzy Logic Method

Soru 18:

Which of the following methods is generally used for the preparation for long term cash budgets?

A) Regression Method B) Adjusted Net Profit Method C) Managerial Assessment Method D) Industry Analysis Method E) Combined Method

Soru 19:

I. Bonds cannot be issued by governments, II. Par value may vary depending on the issuing body, III. Coupon payments are periodic, IV. Coupon rate of a bond determines interest payments. Which of the ones listed above is correct concerning bonds?

A) I, II & III. B) II, III & IV. C) Only II. D) I & III. E) III & IV.

Soru 20:

Why are lower rated companies expected to provide higher yields than higher rated companies with the same maturity?

A) Because they have higher default risk B) Because they have higher maturity risk C) Because they have lower liquidity risk D) Because they have lower credit risk E) Because they have higher interest rate risk