MGT201 Mid and Final Term Past Solved Paper
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What is difference between shares and bonds?
Select correct option:
Bonds are representing ownership whereas shares are not
Shares are representing ownership whereas bonds are not
Shares and bonds both represent equity
Shares and bond both represent liabilities -
@zaasmi said in MGT201 Mid and Final Term Past Solved Paper:
What is difference between shares and bonds?
Shares are representing ownership whereas bonds are not
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Which of the followings expressed the proposition that the cost of equity is a positive linear function of capital structure?
Select correct option:
The Capital Asset Pricing Model M&M Proposition I
M&M Proposition II
The Law of One Price -
@zaasmi said in MGT201 Mid and Final Term Past Solved Paper:
Which of the followings expressed the proposition that the cost of equity is a positive linear function of capital structure?
M&M Proposition II
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The current yield on a bond is equal to ________.
Select correct option:
Annual interest divided by the current market price
The yield to maturity
Annual interest divided by the par value
The internal rate of return -
@zaasmi said in MGT201 Mid and Final Term Past Solved Paper:
The current yield on a bond is equal to ________.
Annual interest divided by the current market price
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When a bond will sell at a discount?
Select correct option:
The coupon rate is greater than the current yield and the current yield is greater than yield to maturity
The coupon rate is greater than yield to maturity
The coupon rate is less than the current yield and the current yield is greater than the yield to maturity
The coupon rate is less than the current yield and the current yield is less than yield to maturity -
@zaasmi said in MGT201 Mid and Final Term Past Solved Paper:
When a bond will sell at a discount?
The coupon rate is less than the current yield and the current yield is less than yield to maturity
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Which of the following formulas represents a correct calculation of the degree of operating leverage?
Select correct option:
(Q - QBE)/Q
(EBIT) / (EBIT - FC)
[Q(P-V) + FC] /[Q(P-V)]
Q(P-V) / [Q(P-V) - FC] -
@zaasmi said in MGT201 Mid and Final Term Past Solved Paper:
Which of the following formulas represents a correct calculation of the degree of operating leverage?
Q(P-V) / [Q(P-V) - FC]
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What are the Direct claim securities?
The securities whose value depends on the cash flows generated by the underlying assets
The securities whose value depends on the value of the underlying assets The securities that do not directly generate any returns for its investors
All of the given options -
@zaasmi said in MGT201 Mid and Final Term Past Solved Paper:
What are the Direct claim securities?
The securities whose value depends on the cash flows generated by the underlying assets
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Companies and individuals running different types of businesses have to make the choices of the asset according to which of the following?
Select correct option:
Life span of the project
Cost of the capital
Return on asset
None of the given options -
@zaasmi said in MGT201 Mid and Final Term Past Solved Paper:
Companies and individuals running different types of businesses have to make the choices of the asset according to which of the following?
Life span of the project
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In the dividend discount model, _____ which of the following are not incorporated into the discount rate?
Select correct option:Real risk-free rate
Risk premium for stocks
Return on assets
Expected inflation rate -
@zaasmi said in MGT201 Mid and Final Term Past Solved Paper:
In the dividend discount model, ________ which of the following are not incorporated into the discount rate?
Return on assets