12/2/2018 Midterms

Question 1
Not yet answered
Given:
Marked out of 1.00 Debt= 1,000,000 ; Common Shares = 10,000,000;Preference Shares = 5,000,000 Cost of Debt = 10% ; Cost of Preference Shares = 5% ;

Find WACC

Select one:
a. 1,050,000
b. 750,000
c. 1,250,000
d. 650,000

Question 2 This is the capital invested in total current assets of the business concern.
Not yet answered
Marked out of 1.00 Select one:
Fixed Capital
Gross Working Capital
Financial casipal
Net Woking Capital

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Question 3
Not yet answered
Marked out of 1.00

Midterms
FPL company has machineries and equipment worth 150,000, land and building for business 1,000,000, Cash 150,000,
Inventories 30,000 and accounts receivables 50,000. He also owes 200,000 to a bank. How much is the gross working capital?

Select one:
a. Php 1,380,000
b. Php 1,180,000
c. Php 380,000
d. Php 230,000

Question 4
Not yet answered
Marked out of 1.00 Select one:
Identification of Proposals - Evaluation - Final Approval
Evaluation - Implementing - Performance Review
Matching of Proposals- Performance Review - Final Approval
Screening pf Proposals - Fixing Properties- Performance review

Question 5 This is the required return on investment of the common shareholders of the company.
Not yet answered
Marked out of 1.00 Select one:
Return on Investment
Return on Equity
Cost of Equity
Return on common share
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Question 6
Not yet answered
Marked out of 1.00

Midterms
These proposals are those that compete with other. Therefore, the acceptance of one proposal will exclude the acceptance of
the other proposals.

Select one:
none of the above
Capital Rationing
Accept-Reject
Mutually Exclusive

Question 7 Which of the following is not considered a capital component for the purpose of calculating the weighted average cost of capital (WACC) as it ap
Not yet answered
Marked out of 1.00 Select one:
preferred Stock
Accruals
Long-term debt
Common Stock

Question 8 If you have a financial source that is required to be paid within ten years, this describes
Not yet answered
Marked out of 1.00 Select one:
Short-term source
Perpetual source
Long-term source
Medium-term source

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Question 9
Not yet answered
Marked out of 1.00

Midterms

Select one:
Matching of Proposals - Final Approval - Performance Review
Final Approval - Implementing - Fixing Properties
Identification of Proposals - Evaluation - Final Approval
Evaluation - Implementing - Performance Review

Question 10 In this approach, the mix of debt and equity capital can increase the value of the firm by reducing overall cost of capital up to certain level of deb
Not yet answered
Marked out of 1.00 Select one:
net operating income approach
Intermediate Approach
Modigliani and Miller Approach
Net Income approach

Question 11 A corporation is issuing 10% common stock that should be sold for Php 15 each. The business will incur flotation costs of Php 5 per share. Wha
Not yet answered
Marked out of 1.00

b. 33.3%
c. 3%
d. 10%

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Question 12
Not yet answered
Marked out of 1.00

Midterms
This refers to the level of inventory at which the total cost of inventory comprising ordering cost and carrying cost.

Select one:
Standard deviation
ABC Analysis
Cost Variance Analysis
Economic Order Quantity (EOQ)

Question 13 Which of the following does not belong to the group?

Not yet answered
Marked out of 1.00 Select one:
net operating income approach
Intermediate Approach
Modigliani and Miller Approach
Net Income approach

Question 14 If you have a financial source that is required to be paid within four years, you have a
Not yet answered
Marked out of 1.00 Select one:
Short-term source
Perpetual source
Long-term source
Medium-term source

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Question 15
Not yet answered
Marked out of 1.00

Midterms
Which is not a motive of holding cash?

Select one:
Precautionary motive
Speculative motive
Transaction motive
Auto Motive

Question 16 FPL Company has a gross working capital of 100,000 and the company has 200,000 total liabilities of which 150,000 are long term debts. What
Not yet answered
Marked out of 1.00 Select one:
a. 100,000
b. 150,000
c. 250,000
d. 50,000

Question 17 FLP Company has 1000 existing common shares. The market value of the share is Php 90 and the net earnings is Php 1,000. What is the cos
Not yet answered
Marked out of 1.00 Select one:
a. 0.11%
b. 0.01%
c. 1.11%
d. 11.11%

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Question 18
Not yet answered
Marked out of 1.00

Midterms
This is the required return on investment of the lenders of a company.

Select one:
Cost of debt
Cost of capital
Return on debt
Total return

Question 19 This is the required rate of return on the various types of financing.
Not yet answered
Marked out of 1.00 Select one:
Total return
Return on debt
Cost of capital
Cost of debt

Question 20 According to this approach, the mix of debt and equity capital can increase the value of the firm by reducing overall cost of capital up to certain l
Not yet answered
Marked out of 1.00 Select one:
Classical Approach
Traditional Approach
Modern Approach
Medieval Approach

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Question 21
Not yet answered
Marked out of 1.00

Midterms
This is the credit extended by
one trader to another for the purchase of goods and services

Select one:
notes
trade credit
bank loans
debentures

Question 22 This is a measurement of the degree to which a firm or project incurs a combination of fixed and variable costs
Not yet answered
Marked out of 1.00 Select one:
Leverage
Combined Degree of Leverage
Degree of Financial Leverage
Degree of Operating Leverage

Question 23 The objective of having a good is to maximize the value of the firm and minimize the overall cost of capital.
Not yet answered
Marked out of 1.00 Select one:
Operations
Income
Capital structure
Business
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Question 24
Not yet answered
Marked out of 1.00

Midterms
These are sources of finances which have a required of payment for a period not exceeding one year.

Select one:
Long-term
Short-term
Medium-term
Perpetual

Question 25 This policy is usually used when the companies are facing constraints of earnings and unsuccessful business operation
Not yet answered
Marked out of 1.00 Select one:
Unstable Policy
Irregular Dividend Policy
Regular Dividend policy
Stable Dividend Policy

Question 26 FPL Company has a total Assets worth 400,000 of which 250,000 are non current the company also has 200,000 total liabilities of which 150,00
Not yet answered
Marked out of 1.00 Select one:
a. 100,000
b. 150,000
c. 200,000
d. 300,000

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Question 27
Not yet answered
Marked out of 1.00

Midterms
A corporation is issuing 10% common stock that should be sold for Php 15 each. The business will incur flotation costs of Php
2 per share. With growth rate of 5% What is the cost of capital?

Select one:
a. 16.54%
b. 61.54%
c. 13.54%
d. 4.12%

Question 28 This is a decision support tool that uses a tree-like graph or model of decisions and their possible consequences, including chance event outcom
Not yet answered
Marked out of 1.00 Select one:
Decision Tree Analysis
Tree of Chances Analysis
Financial Tree Analysis
Financial Tree Diagram

Question 29 Which is not a part of process?

Not yet answered
Marked out of 1.00 Select one:
Performance Review
Observation of proposal making
Screening proposals
Fixing property

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Question 30
Not yet answered
Marked out of 1.00

Midterms
This is a metric that measures the degree to which a company uses fixed income securities such as debt and preferred equity.

Select one:
Degree of Operating Leverage
Combined Degree of Leverage
Degree of Financial Leverage
Leverage

Question 31 These funds are obtained from banks and credit unions
Not yet answered
Marked out of 1.00 Select one:
Long-term source
Short-term source
Owner's funds
borrowed funds

Question 32 This is a statistical measure of the variability of a distribution around its mean. It is the square root of the variance.
Not yet answered
Marked out of 1.00 Select one:
Expected value
Squared variance analysis
Financial Tree Analysis
Standard deviation

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Question 33
Not yet answered
Marked out of 1.00

Midterms
This is the use of various financial instruments or borrowed capital, such as margin, to increase the potential return of an
investment.

Select one:
efficiency
leverage
capital efficiency
efficacy

Question 34 FPL Company plans to make Php50,000 loan with Php7,000 annual interest. If the cost incurred related to this instrument is Php2,000 and the t
Not yet answered
Marked out of 1.00 Select one:
a. 4.38%
b. 10.21%
c. 10.00%
d. 9.80%

Question 35 This is a measure of both a company's efficiency and its short-term financial health.
Not yet answered
Marked out of 1.00 Select one:
Fixed Capital
Net Capital
Financial Capital
Working Capital

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Question 36
Not yet answered
Marked out of 1.00

Midterms
Examples of this outlay are the purchase of fixed assets such as land and building, plant and machinery, expenses relating to
improvement or renovation these fixed assets and costs incurred for the research and development projects

Select one:
Fixed capital
Working Capital
Working Assets
Fixed Assets

Question 37 This is the required return on investment of the preferred shareholders of the company.
Not yet answered
Marked out of 1.00 Select one:
Return on Investment
Cost of capital
Return on Preference share
Cost of preference share

Question 38 FPL Company has a net working capital of 100,000 and the company has 200,000 total liabilities of which 150,000 are long term debts. What is
Not yet answered
Marked out of 1.00 Select one:
a. 150,000
b. 300,000
c. 200,000
d. 250,000

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Question 39
Not yet answered
Marked out of 1.00

Midterms
Which does not belong to the group?

Select one:
Commercial papers
retained earnings
preference shares
trade credit

Question 40 FPL Company has a gross working capital of 100,000 and the company has 200,000 total liabilities of which 150,000 are long term debts. What
Not yet answered
Marked out of 1.00 Select one:
a. 50,000
b. 150,000
c. 250,000
d. 100,000

Question 41 Which of the following does not belong to the group?

Not yet answered
Marked out of 1.00 Select one:
Earning price approach
dividend price approach
dividend price minus growth approach
dividend price plus growth approach

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Question 42
Not yet answered
Marked out of 1.00

Midterms
This determines the amount of profit to be distributed among shareholders and amount of profit to be treated as retained
earnings for financing its long term growth

Select one:
Income Distribution Ratio
Dividend Policy
Net income sharing
Share Issuance Policy

Question 43 Which does not belong to the classification of the sources of financing?
Not yet
answer Select one:
ed
a. based on the source of generation
Marked out of
b. based on interest

c. based on ownership

d. based on period

Question 44 FPL Company owes Php20,000 to supplier A, Php30,000 to Supplier B, 50,000 to Supplier C and a long term bonds payable
Not yet 10,000. After struggling in its operations, the company ended up having Php20,000 cash on hand, Php30,000 worth
answer inventories, Php40,000 Accounts receivable and equipment worth Php50,000. What is the net working capital?
ed

Marked out of Select one:

a. Php 30,000

b. Php 40,000

c. none of these
 d. Php 70,000

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 Question 45
12/2/2018 Midterms
Not yet answered
This type of decision making applies when the projects proposed are independent from each other. The acceptance or
Marked out of 1.00 rejection of one proposal does not affect the decision on the other proposals.

Select one:
a. Capital Rationing

b. Mutually Exclusive

c. Accept-Reject

d. none of the above

Question 46
Not yet answered
This is the process in which a business determines and evaluates potential expenses or investments that are large in nature.
Marked out of 1.00

Select one:
a. Investment-expense Analysis

b. Monetary Management

c. Capital Budgeting (https://blended.amauonline.com/mod/page/view.php?id=57604)

d. Financial Capital

Question 47
Not yet answered
Marked out of 1.00 Select one:
Matching of Proposals- Performance Review - Final Approval
Evaluation - Implementing - Performance Review
Identification of Proposals - Evaluation - Final Approval
Identification of Proposals - Screening of Proposals - Evaluation

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 Question 48
12/2/2018
Not yet answered
This is the mix or proportion of a firm’s permanent long-termMidterms
financing represented by debt, preferred stock, and common
Marked out of 1.00 stock equity.

Select one:
Capital Structure

Retained earnings

Equity and Debt

Investment Mix

Question 49
Not yet answered
This is the after tax cost of long-term funds through borrowing.
Marked out of 1.00

Select one:
a. Total return

b. Return on debt

c. Cost of capital

d. Cost of debt

Question 50 These are source of finances are those which are required for a period of more than five years.
Not yet answered
Marked out of 1.00 Select one:
Long-term
Medium-term
Short-term
Perpetual

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