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An alternative to sale and leaseback is
__________is not a source of long-term funds
The Nigerian Stock Exchange is
The two classifications of commercial paper are
Relationship between two or more securities is measured by the
…………………. is not a theory of share value
The type of risk where the outcome may be a loss or a profit is called ……………
The dividend payout ratio is equal to:
A risk-free security has a Beta and risk premium of ________
Systematic risk comprises of
One of these is NOT of the various approaches to valuing firms.
Where the cost of debt capital is higher than the cost of equity capital, ______ occurs.
IRR can be modified under which of the following circumstance?
If N6,000 invested today has an internal rate of return of 23%. What would it have generated in the next one year?
________ reflects the return shareholders would obtain if cash flows were paid out as dividends
Elton Mayor Farms Inc. has an 8% return on total assets of N300,000 and a net profit margin of 5%. What are its sales?
The trade terms “2/15, net 30” indicate that
Cash cycle is determined by
One of the following is NOT a source of finance for Small and Medium-sized enterprises.
A huge sum of foreign money set aside for investment or speculation in a country when interest rates are higher than what obtains in other countries called________.
_______ involves the payment of a dividend in the form of extra shares.
A scrip issue is also called_________
______is the apex regulatory institution of the Nigerian Capital Market.
________ occurs where the future outcome cannot be predicted with any degree of confidence from knowledge of past or existing events, so that no probability estimates are available.
When using a probability tree approach to calculate “expected NPV” we typically use the ____ to discount the cash flows.
The ______ is the document the public relies on for making investment decision on shares of a quoted company.
________is a portfolio that gives the highest expected return for a given standard deviation, or the lowest standard deviation for a given expected return.
The theory which states that future patterns of share prices are a repetition of the same pattern of price movements which has occurred in the past is …………
(Rm – Rf) stands for _____
______ is the difference between expected return and required return.
A firm’s degree of _______depends primarily upon its closeness to its operating break-even point.
If interest expenses for a firm rise, we know that firm has taken on more ______.
The discount rate that is minimum acceptable expected return on a project given its risk is known as the _______.
The best method to deriving a solution towards maximizing the NPV of a divisible project under multi-period capital rationing is using the technique of ________.
The model that has to do with share price movement which is a function of the fact that the present value of the anticipated future of dividends determines the price of shares is _______.
The cost of capital at the retained earnings breakpoint is the______.
The ______ ratio indicates the return firm shareholders are earning.
Opomulero Inc. has annual credit sales of N1.2million and a net income of N90,000. their balance sheet reflects an inventory of N400,000, average accounts receivable of N240,000, total debt of N2.3million, and total equity of N2.5million. Opomulero is open 365 days a year. The average collection period is______
Selling Accounts Receivable to a third party at a reduced price is part of the collection process known as_____.
The interest rate given by a bank to its most creditworthy customers is the ______.
Bayojola who recently won a lottery wants to invest his N40,000 winning for a period of one year. He was considering two proposals both of which have discrete probability distributions of cash flow as listed below for the next year:
Proposal A Proposal B
Probability Cash Inflow Probability Cash Inflow
0.10 3,000 0.10 2,000
0.20 3,500 0.25 3,000
0.40 4,000 0.30 4,000
0.20 4,500 0.25 5,000
0.10 5,000 0.10 6,000
However, his friend, a stockbroker, strongly recommended that Bayojola should invest the N40,000 in treasury certificates recently issued by the Federal Government. The treasury certificate bears an interest rate of 10%. Bayojola is uncertain about what course of action to take. He has called on you to:
This response will be awarded full points automatically, but it can be reviewed and adjusted after submission.
This response will be awarded full points automatically, but it can be reviewed and adjusted after submission.
Dantata & Sawoe Construction Plc. is a machine tools company with the following capital structure as at 31st December, 2009
N
Ordinary Shares of N1 500,000
Capital Reserves 400,000
Revenue Reserves 600,000
1,500,000
9% perpetual debentures 400,000
15% perpetual debentures 600,000
2,500,000
The current yield on debentures of this risk class is 12%. The current share price is 550k and earnings per share 110k.
The company is considering an expansion plan which will cost N1,000,000 and which will increase earning by N200,000 per annum for the foreseeable future.
There are two (2) possible ways to raise the funds required:
Required:
This response will be awarded full points automatically, but it can be reviewed and adjusted after submission.
The table below gives information extracted from the annual accounts of WKC Plc. for the past three (3) years.
You are required to calculate the length of the working capital cycle year by assuming 365 days in the year.
WKC Plc. – Extracts from Annual Accounts
Year 1 Year 2 Year 3
N N N
Stocks: Raw materials 108,000 145,800 180,000
Work-in-progress 75,600 97,200 93,360
Finished Goods 86,400 129,600 142,875
Purchases 518,400 702,000 720,000
Cost of goods sold 756,000 972,000 1,098,360
Sales 864,000 1,080,000 1,188,000
Debtors 172,800 259,200 297,000
Trade Creditors 86,400 105,300 126,000
This response will be awarded full points automatically, but it can be reviewed and adjusted after submission.