Seçmeli Ara Sınav - Busıness Fınance Iı

Soru 1:

ABC Corp. has a historical beta of 1.25 and the expected market return is 10%, whereas the risk free rate is 5%. What is the required return of the stockholders of ABC?

A) 0.1575 B) 0.1525 C) 0.1300 D) 0.1215 E) 0.1125

Soru 2:

I. Surety for a person. II. Feasibility, III. Pledge, IV. Leasing. Which of the factors listed above is assessed by the banks while deciding on a loan?

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

Soru 3:

Which of the following equations is used to measure WACC?

A) B) C) D)

Soru 4:

The basic terms of the bonds The total amount of bonds issued A description of property used as security The repayment arrangements The call provisions Details of the protective covenants What does the bond indenture generally include?

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

Soru 5:

Which one of the following is a ratio measuring the profitability on equity capital and it is the division of the net income by the total common equity?

A) Capital asset pricing model B) Bond yield C) Dividend payout ratio D) Return on equity E) Return on investment

Soru 6:

It requires projected cash flows are discounted at an appropriate discount rate. It tells the length of time it takes to get initial cash outflow back. It is a simple, easy to use and easy to understand technique. It has the assumption that cash flow occurs at a constant rate throughout the year. Which of the above are among the characteristics of payback period decision-making technique?

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

Soru 7:

Estimating cash flow Adding up the discounted cash flows to obtain NPV Discounting cash flows by an appropriate discount rate Projecting the risk differences of different projects Which of the following are the steps of calculating net present value?

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

Soru 8:

Which of the following is the real option correspondent of the effect of stock's price in stock options in the valuation of a stock option?

A) The same risk-free interest rate in real options B) Uncertainty of the project’s cash flows in real options C) The effect of the project’s useful life in real options D) The effect of the present value of cash flows from the investment opportunity in real options E) The effect of the present value of the delayed capital expenditure of future cost savings in real options

Soru 9:

No fixed dividend payment obligation Irredeemable Obstacles in Managemeent Limited Income to Investor Loss of Leverage Contributions Which of the above are disadvantages of common stock?

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

Soru 10:

Which of the following is not among the other factors that affect the capital structure?

A) The age of the market B) The political stability C) The firm's level of leverage D) The demand volatility E) The legal status of the firm

Soru 11:

Which of the followings is not among the possible costs considering long-term loans?

A) Covenant compliance fees. B) Arrangement fees. C) Lease. D) Professional advice. E) Interest.

Soru 12:

Classical Loans Revolving Credits Bank Overdraft Project Loans Syndication Loans Which of the above are the loans which are based on the same principle?

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

Soru 13:

Stockholders Sales volume Per-unit price Input costs Competition Which of the above are among the factors affecting the business risk?

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

Soru 14:

Projecting the cost of debt and equity in order to quantify the WACC Identifying a capital structure maximizing the firm value Deducting debt from the value of the firm to measure the value of the equity and the stock price Evaluating shareholders’ wealth Capitalizing the forecasted free cash flows at the calculated WACC to determine the firm value In which of the following is the order of analysis in estimating the optimal capital structure given correctly?

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

Soru 15:

... refers to the process of evaluating and selecting long-term investments which are consistent with the firm’s main objective of maximizing shareholders’ wealth. Which one of the following completes the sentence?

A) Capital budgeting B) Investment C) Capital expenditure D) Cash flow E) Payback period

Soru 16:

XYZ Corp. borrows $200,000 as a bank loan at an annual interest rate of 10%. The company pays 25% corporate tax rate. What is the after-tax rate of borrowing for XYZ Corp.?

A) 0.025 B) 0.05 C) 0.075 D) 0.1 E) 0.15

Soru 17:

Debt is not an ownership interest in the firm. The corporation’s payment of interest on debt is considered a cost of doing business and is fully tax deductible. Creditors do not generally have voting power. Dividends paid to stockholders are tax deductible. Unpaid debt is a liability of the firm. Which of the statements above in terms of debt and equity are correct?

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

Soru 18:

What is a Eurobond?

A) International bonds are issued in a country by a domestic entity. B) A Eurobond is a bond issued in multiple countries but denominated in a single currency and those bonds have become an important way to raise capital for many international companies and governments. C) A Eurobond is denominated in returnsas the company's stock other than that, of its country of issue. D) Eurobond the stock market is unpredictable it is very easy to lose money by investing in the wrong stocks. E) A Eurobond is an national bond that is denominated in a currency not native to the country where it is issued.

Soru 19:

What is the formula above used to calculate?

A) The value of the debts B) The value of the firm C) The sum of the firm's equity D) The net working capital of the firm E) The average cost of capital of the firm

Soru 20:

How it is possible to measure level of the fixed costs in total costs?

A) Return of invested capital B) Weighted average cost of capital C) Total liabilites and equity D) Working capital E) Degree of operating leverage