FIN622 All Solved Data

Fin 622 solved material

ALL SOLVED DATA WITH REFRENCE OF CORPORATE FINANCE (FIN622)

KINDLY IF YOU FIND ANY MISTAKE THEN TELL ME I WILL CHECK ACCODING TO MY KNOWDELGE AS WELL AS I CONCERN BOOKS SERCHING AND OTHER MATERIAL

Q9. of 15 ( Start time: 03:20:24 PM ) Total Marks: 1

The effective annual rate of an investment with a nominal annual rate of 10% compounded monthly is closest to ______.

11. 04%
12. 47%
13. 00%
14. 12%

ref:

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The formula for the break-even quantity of output (QBE), given the price per unit (P), fixed costs (FC), and variable cost per unit (V), is:

QBE = (P - V)/FC.

QBE = (P/FC) - V.

QBE = (FC/P) - V.

QBE = FC/ (P - V).

If an investor buys a non-zero coupon bond and holds it to maturity, then the rate of return she will receive depends on:

The bond's maturity value. The price paid for the bond The interest payments to be received. All of the given options not sure

Which one of the following statements describe "Shareholders¶ wealth" in a firm?

The number of people employed in the firm The book value of the firm's assets less the book value of its liabilities The market price per share of the firm's common stock The amount of salary paid to its employees Ref:

ms_what

If common stocks of a company have beta value equal to 1, then such stocks are known as:

Normal stocks Aggressive stocks Defensive stocks Income stocks

Aggressive stok beta value greater than one and defensive stock beta value less than one so reminder is Normal stock so I think it,s Normal stock

Holding everything else constant, increasing fixed costs ______ the firm's break-even point.

Decreases Increases the covariance of Increases Does not affect

Suppose you have a 2-stocks portfolio, which consists of Stock A and Stock B. If stock A has a beta value of 1.8 and stock B has a beta value of 0.68, and your investment in stock A and stocks B is equal, then the beta of this 2-stock portfolio would be equal to:

1. 20

1.24

1. 30
2. 45

Which of the following is known as market portfolio?

A portfolio consists of all risk free securities available in the market A portfolio consists of securities of the same industry A portfolio consists of all aggressive securities available in the market A portfolio consists of all securities available in the market

The term structure of interest rates refers to the relationship between yield and:

Rating, for securities with the same maturity. Marketability, for securities with the same tax status. Maturity, for the same security class. Risk, for securities with the same maturity.

If you deposit $12,000 per year for 16 years (each deposit is made at the beginning of each year) in an account that pays an annual interest rate of 15%, what will your account be worth at the end of 16 years?

$82,168.44

$71,450.82

$768,901.12 $668,609.67

Which of the following changes will occur if a bond's yield-to-maturity increases, keeping other things equal ?

Its price will rise Its price will remain unchanged Its price will fall. 100% sure Can not be determined

Q4. of 15 ( Start time: 03:33:44 PM ) Total Marks: 1

Which of the following is a major advantage of the corporate form of organization?

Reduction of double taxation.