MGT201 Final Term Solved Paper Spring 2010

MGT201 FINAL TERM SOLVED PAPER (VISIT VURANK FOR MORE)

Q1. Which of the following financial market is referred to the market for short-term government and corporate debt securities? (1 marks)

1. Money market
2. Capital market
3. Primary market
4. Secondary market

Q2. Which of the following would be deductible as an expense on the corporation's income statement? (1 marks)

1. Interest paid on outstanding bonds
2. Cash dividends paid on outstanding common stock
3. Cash dividends paid on outstanding preferred stock
4. All of the given options

Q3. In finance, we refer to the market where new securities are bought and sold for the first time as the __________ market. (1 marks)

1. Money market
2. Capital market
3. Primary market
4. Secondary market

Q4. Felton Farm Supplies, Inc., has an 8 percent return on total assets of Rs.300,000 and a net profit margin of 5 percent. What are its sales? (1 marks)

1. 750,0Rs.3, 750,000
2. Rs.48Rs.480, 000
3. Rs.30Rs.300, 000
4. Rs.1, Rs.1, 500,000

Q5. An investment proposal should be judged in whether or not it provides: (1 marks)

1. A return equal to the return require by the investor
2. A return more than required by investor
3. A return less than required by investor
4. A return equal to or more than required by investor

Q6. The value of a bond is directly derived from which of the following? (1 marks)

1. Cash flows
2. Coupon receipts
3. Par recovery at maturity
4. All of the given options

Q7. A statistical measure of the variability of a distribution around its mean is referred to as __________. (1 marks)

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