MGT201 Mid and Final Term Past Solved Paper

@zaasmi said in MGT201 Mid and Final Term Past Solved Paper:
Which of the following is correct regarding the opportunity cost of capital for a project?
All of the given options

Which of the following is correct regarding the opportunity cost of capital for a project?
Select correct option:The opportunity cost of capital is the return that investors give up by investing in the project rather than in securities of equivalent risk.
Financial managers use the capital asset pricing model to estimate the opportunity cost of capital
The company cost of capital is the expected rate of return demanded by investors in a company
All of the given options

@zaasmi said in MGT201 Mid and Final Term Past Solved Paper:
The Larger the coefficient of variation Larger the relative risk of the investment.

The __________ the coefficient of variation ________ the relative risk of the investment.
Select correct option:
Larger; Larger
Larger; Smaller
Smaller; Larger
Smaller; Smaller

@zaasmi said in MGT201 Mid and Final Term Past Solved Paper:
When taxes are considered, the value of a levered firm equals the value of the Unlevered firm plus the present value of the tax shield> .
Unlevered firm plus the present value of the tax shield

When taxes are considered, the value of a levered firm equals the value of the________.
Select correct option:
Unlevered firm
Unlevered firm plus the value of the debt
Unlevered firm plus the present value of the tax shield
Unlevered firm plus the value of the debt plus the value of the tax shield

@zaasmi said in MGT201 Mid and Final Term Past Solved Paper:
Nominal Interest Rate is also known as:
Annual percentage rate

Nominal Interest Rate is also known as:
Select correct option:
Effective interest Rate
Annual percentage rate
Periodic interest rate
Required interest rate

@zaasmi said in MGT201 Mid and Final Term Past Solved Paper:
What is the easiest method to diversify away firmspecific risks?
To purchase the shares of a mutual fund

What is the easiest method to diversify away firmspecific risks?
Select correct option:
To buy stocks with a beta of 1.0
To build a portfolio with 510 individual stocks
To purchase the shares of a mutual fund
To purchase stocks that plot above the security market line

@zaasmi said in MGT201 Mid and Final Term Past Solved Paper:
Where the stock points will lie, if a stock is a part of totally diversified portfolio?
It will line exactly on the regression line

Where the stock points will lie, if a stock is a part of totally diversified portfolio?
Select correct option:
It will lie below the regression line
It will line above the regression line
It will line exactly on the regression line It will be tangent to the regression line

@zaasmi said in MGT201 Mid and Final Term Past Solved Paper:
An annuity due is always worth More than a comparable annuity.
More than

An annuity due is always worth _____ a comparable annuity. Select correct option:
Less than
More than
Equal to
Can not be found from the given information