BSC Quiz On Chapters 1&2-2
BSC Quiz On Chapters 1&2-2
BSC Quiz On Chapters 1&2-2
a. comparable houses
b. realised sales prices from such houses
c. any differences between the house being valued and
comparables
d. all of the above
7. Derivatives have little value because:
a. they do not generate P&I
b. they involve substantial risk
c. they trade on a derivative market not on a cash market
d. the statement may be considered to be untrue
8. Risk management could mean:
a. avoiding risk by holding savings only in government
guaranteed bank deposits
b. holding a wide range of assets with different characteristics
c. never buying shares
d. any of the above
9. The capital budgeting department in a company discounts
expected costs and revenues at a rate equal to:
a. the cost of equity
b. the cost of debt
c. the weighted average cost of capital of the company
d. the government 10 year bond yield adjusted for the
additional risk of the proposed investment and the
proportion of equity that is guaranteed by the company
10.
A loan is:
a. a way of obtaining liquidity
b. always a bad way to finance consumption expenditures
c. always a good way to finance capital investment
d. always a good way to finance share purchase
e. all of the above
11.
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15.
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20.
Pari-passu means:
a. preferentially and in proportion to class
b. proportionally without preference
c. particular preference to equity
d. none of the above
21.
22.