ACC501 Final Term Quiz by VU Sparky

Q2. A project whose acceptance prevents the acceptance of one or more alternative projects is referred to as a(n):

1. dependent project
2. contingent project
3. independent project

Q3. Prime advantage of investing in different securities is:

1. Increased liquidity
2. Easy management of securities
3. All of the given options

Q4. Suppose market value exceeds book value by Rs. 250,000. What will be the after-tax proceeds if there is a tax rate of 34 percent ?

1. Rs. 165,000
2. Rs. 225,000
3. Rs. 148,500
4. Rs. 105,600

Q5. Which one of the following represents a cash outflow?

1. Increase in payables
2. Increase in long term debt
3. Increase in receiveables

Q6. A set of possible values that a random variable can assume and their associated probabilities of occurrence are referred as :

1. Coefficient of variation
2. The expected return
3. Probability distribution
4. The standard deviation

Q7. Which of the following can be calculated if, average net income is divided by average book value?

1. NPV
2. Payback period
3. IRR

1. Over the past four years, a company has paid dividends of Rs. 1.00,

Q1. 10, 1.20 and 1.30 in Year 1, 2, 3 and 4 respectively. The same pattern is expected to continue in the future as well. This is an example of a company paying dividends that grows by:

1. 10 percent each year
2. At a decreasing rate
3. At a constant rate
4. A decreasing amount

Q2. Which of the following type of bond pays no coupon at all and are offered at a price that is much lower than its stated value?

1. Floating-rate bonds
2. Euro bonds
3. Government bonds
4. Zero coupon bonds

Q3. An investment plan is acceptable if its NPV is:

1. Equal to ZERO
2. Less than ZERO
3. Greater than ZERO
4. All of the above

Q4. In which type of the market, securities are originally sold to the investors?

1. Primary Market
2. Tertiary Market
3. Secondary Market
4. None of the given options