301. If you want to deposit money into bank, what will be yours choice?
Compounding annually
Compounding Semi-annually
Compounding monthly
Compounding daily
Correct answer: (D) Compounding daily
302. Interest paid (earned) on both the original principal borrowed (lent) and previous interest allowed (earned) is often referred to as ______________.
Compound interest
Double interest
Simple interest
Present value
Correct answer: (A) Compound interest
303. Which of the following is the activity which finance people are involved
Investing decisions
Marketing decisions
Promotion decisions
Non of Above
Correct answer: (A) Investing decisions
304. The Bailey Brothers want to issue 20-year, zero coupon bonds that yield 9 percent. What price should it charge for these bonds if the face value is $1,000?
$ 157.25
$ 163.70
$ 178.43
$ 194.49
Correct answer: (C) $ 178.43
305. When bonds are issued, under which of the following category the value of the bond appears?
Equity
Fixed assets
Short term loan
Long term loan
Correct answer: (D) Long term loan
306. What type of long-term financing most likely has the following features: (1) it has an infinite and finite life (2) it pays dividends, and (3) its cash flows are expected to be a constant annuity stream.
Long-term debt
Preferred stock
Common stock
None of the given option
Correct answer: (B) Preferred stock
307. PV of lump sum is simply termed as current value ofor
Present payment
Future payment
Annuity payment
Discount payment
Correct answer: (B) Future payment
308. ______________ Ratios are used to measure a firm’s ability to meet short-term obligations.mpor
Asset management ratios
Debt management ratios
Liquidity ratios
Equity ratios
Correct answer: (C) Liquidity ratios
309. Creditors turnover ratios comes under the category of
Activity ratios
Asset management ratios
All of the above
None of the above
Correct answer: (C) All of the above
310. Dividend is approved by the shareholder in the ______________ at the recommendation of the directors.