A markets which deals with long-term corporate stocks are classified as:
A. Liquid markets
B. Short-term markets
C. Capital markets
D. Money markets
Right held with corporations to call issued bonds for redemption is considered as:
A. Artificial provision
B. Call provision
C. Redeem provision
D. Original provision
Price of an outstanding bond decreases when market rate is:
A. Increased
B. Decreased
C. Earned
D. Never changed
Type of bond in which payments are made on basis of inflation index is classified as:
A. Borrowed bond
B. Purchasing power bond
C. Surplus bond
D. Deficit bond
If coupon rate is more than going rate of interest, then bond will be sold:
A. More than its par value
B. Seasoned par value
C. At par value
D. Below its par value
During planning period, a marginal cost for raising a new debt is classified as:
A. Debt cost
B. Relevant cost
C. Borrowing cost
D. Embedded cost
A risk associated with project and way considered by well diversified stockholder is classified as:
A. Expected risk
B. Beta risk
C. Industry risk
D. Returning risk
Variability for expected returns for projects is classified as:
A. Expected risk
B. Stand-alone risk
C. Variable risk
D. Returning risk
Method uses for an estimation of cost of equity is classified as:
A. Market cash flow
B. Future cash flow method
C. Discounted cash flow method
D. Present cash flow method
In weighted average capital, capital structure weights estimation does not rely on value of:
A. Investors equity
B. Market value of equity
C. Book value of equity
D. Stock equity
