Seçmeli Ara Sınav - Busıness Fınance Iı

Soru 1:

Which of the following is a benchmark rate that represents the interest rate at which banks offer to lend funds to one another in the international interbank market for short-term loans?

A) LIBOR B) Convertible bond C) Floating rates D) Risk premium E) Option

Soru 2:

Which of the following is not true for preferred stocks?

A) Preferred stocks are hybrid assets B) In some ways they resemble to bonds and in others to common stocks C) Preferred dividends are paid out before the dividends to common stockholders. D) Preferred stockholders have voting rights. E) A preferred stockholder receives fixed preferred dividends that are not tax deductible.

Soru 3:

What is the trade off theory of capital structure?

A) Theory that the firm's capital structure is determined by a trade-off of the value of tax shields against the costs of bankruptcy B) Capital markets are perfect with rational investors that can freely buy and sell assets. C) Investors and companies can borrow at the same rate with no restrictions. D) There are no transaction costs in financial asset trading. E) All investors can access the same information as the managers of a company without paying anyinformation cost.

Soru 4:

When debt and equity are considered, which of the followings is correct?

A) Unpaid debt is a liability of the firm. B) Debt is an ownership interest in the firm. C) Creditors generally have voting power over debt. D) Creditors cannot legally claim the assets of the firm over unpaid debt. E) Interest on debt is not tax deductible.

Soru 5:

In which bank loan type, a limit of credit is set on the credit account of the borrower and both limits of credit and the due date are determined in a loan agreement?

A) Classical B) Revolving credits C) Bank overdraft D) Project loans E) Syndication loans

Soru 6:

What is the concept of leasing?

A) A lease is a contract outlining the terms under which one party agrees to give property owned by another party. B) Known as the owner, buying of an asset and guarantees the seller the property owner or landlord, regular payments from the buyer for a specified number of months or years. C) A lease agreement is a contract between a landlord and a buyer that covers the selling of property for long periods of time. D) Vehicle using is the leasing of a motor vehicle for a fixed period of time at an agreed amount of money for the using. E) A lease is a contractual agreement between a lessee and lessor establishing that the lessee has the right to use an asset and in return must make periodic payments to the lessor who is the owner of the asset.

Soru 7:

Debt Issuance Equity Finance Securitization Retained Earning Depreciation Which of the above are internal sources which provide financing to the corporate?

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

Soru 8:

Which one of the following is the mix of debt and equity?

A) Fixed assets B) Total assets C) Capital structure D) Bankruptcy E) The value of the firm

Soru 9:

The variance ... is an indicator of the business risk and a higher variance demonstrates a higher business risk.

A) In the DOL B) In the FCF C) In the NOPAT D) Financial leverage E) In the ROIC

Soru 10:

How does the economic environment affect the business?

A) Such factors include GDP of the economy, per capita income, availability of capital, utilization of resources. B) The term economic environment refers to all the external economic factors. C) These factors are often beyond a company's control, and may be either large-scale (macro) or small-scale (micro). D) The economic environment consists of both macroeconomic factors involving such things as market condution, forces of demand and suppley, inflation, interest rates and taxes. E) Each firm has specific features affecting its asset structure, risk, and competitive strength.

Soru 11:

Which of the following refers to all kinds of spendings made to acquire, sustain and increase production factors?

A) Investment B) Capital expenditure C) Capital budgeting D) Cash flow E) Net present value

Soru 12:

Which one of the following estimates the required return of a stock investment in relation to its systematic risk which cannot be diversified away in a portfolio context?

A) Capital asset pricing model B) Cost of common equity C) Bond-Yield-Plus-Risk-Premium approach D) Dividend-growth model E) Cost of preferred stocks

Soru 13:

I. retained earnings II. short-term borrowings III. long-term debt IV. depreciation V. equity finance Which of the cash sources above are used to generate funds for internal cash flows?

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

Soru 14:

ABC Corp. recently issued preferred stocks for raising additional $200,000 of equity funds. Investors bought each share paying a price of $100, however ABC had to incur 5% flotation costs on the preferred stock issue. The preferred dividends are $10 per share. What is the return of the preferred stockholders?

A) %10 B) %12 C) %15 D) %18 E) %20

Soru 15:

What are financial risks in business?

A) The financial risk is related to the uncertainty in the business operations of the firm. financial risk is influenced by numerous factors, including sales volume, per-unit price, input costs, competition, the overall economic conditions. B) The future expected profit from operations and the future expected capital investments are tried to be forecasted without certainty. C) Financial risk is the additional risk borne by the stockholders when the company raises debt financing. D) Financial risks involve financial transactions, such as company expectations and competitions to go into default. E) Risk assessment is a general term used across many industries to determine the likelihood of loss on an asset, loan, or investment

Soru 16:

What do you mean by optimal capital structure?

A) Optimum capital structure is the capital structure at which the weighted average cost of capital is minimum and thereby the value of the firm is maximum. B) An optimal capital structure is the best mix of debt. C) A company'scapital structureis arguably one ofitsmostimportantchoices. D) The capital structure is how a firm finances its overall operations and growth by using different sources of funds. E) The capital structure is defined as the careful balance between equity and debt.

Soru 17:

How do floating rate bonds work?

A) By the time the changing interest environment in the international financial markets, floating rate bonds (floaters) began to be issued in which, the coupon payments are adjustable. B) A floating rate bond, where the bond has five years until maturity. C) Some characteristics of the floaters have been developed in order to protect the investors. D) A floating rate fund is a fund that invests in financial instruments paying but a fixed interest rate. E) Floating rate notes are bonds that have a variable coupon, equal to a money market reference rate.

Soru 18:

ABC Corp. distributes 60% of its net income as dividends. The firm’s ROE is 16% and last year stockholders received $1.60 dividends per share. Currently the stock sells at $34.60. What is the cost of equity of ABC Corp.?

A) 3.46% B) 5.64% C) 6.34% D) 11.32% E) 18.11%

Soru 19:

How do bank fees work?

A) Inflation will also affect interest rate levels. B) Interest rate risk is the probability of a decline in the value of an asset resulting from unexpected fluctuations in interest rates. C) Ask for accounts for older people or students. D) Bank fees and charges are determined depending on the type of loan and on the lender. E) Compare banks with similar features.

Soru 20:

Retained Earnings Depreciation Short-term Borrowings Long-term Debt Equity Finance Which of the above are the cash sources which external cash flow is generated from?

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