Best of Financial Management Quizes

Question 1

Mezzanine Financing (is)

Accepted Answer

A financing tool, combining characteristics of equtiy + debt., Always external financing., Provides more flexibility to the company.

Question 2

What is the IRR of this investment?

Accepted Answer

6,7

Question 3

What is the cf from operating activity

Accepted Answer

450,000

Question 4

An example for internal debt financing is...

Accepted Answer

The building of accruals.

Question 5

An investment with non-conventional cash flows

Accepted Answer

Has more than one value for 'r'

Question 6

What is the total cf of the period?

Accepted Answer

100,000

Question 7

NOPAT

Accepted Answer

Is an adjusted profit measure., Ignores the effect of different capital structures.

Question 8

Debt financing

Accepted Answer

Leads to redemption and interest payments., Has a tax advantage over equtiy financing.

Question 9

Which of the following characteristics are common to equity financing?

Accepted Answer

High risk from the Investor's perspective., Managing authority.

Question 10

The lower the CCC, the more efficient working capital management.

Accepted Answer

True

Question 11

The interest rate i is based on the following components:

Accepted Answer

Inflation, Liquidity Premium, Risk premium

Question 12

In financing, we distinguish between

Accepted Answer

internal and external, equity and debt

Question 13

Depreciation is...

Accepted Answer

A form of internal equity financing., An expense that does not lead to outflows of cash.

Question 14

with increasing cost of capital (i), the NPV will decrease

Accepted Answer

True

Question 15

What does EBIT stand for

Accepted Answer

Earnings before interest and taxes.

Question 16

If interest rate i increases, the net present value of an investment will...

Accepted Answer

Decrease

Question 17

What is the payback period?

Accepted Answer

2y4m

Question 18

An investment with non-conventional CFs (see above)

Accepted Answer

May have two valid values for the IRR

Question 19

Static investment appraisal acknowledges the time value of money.

Accepted Answer

False

Question 20

The net present value of this investment is:

Accepted Answer

2,505, Positive

Question 21

The purchase of a tablet computer is...

Accepted Answer

an exemple for investment

Question 22

IPO stands for

Accepted Answer

Initial Public Offering.

Question 23

An investment with a higher (positive) NPV is always superior

Accepted Answer

True

Question 24

Shareholders

Accepted Answer

Provide risk capital., Have a claim on liquidation profits., Have voting rights.

Question 25

The NPV:

Accepted Answer

Is the economic gain of an investment, Is the return in access of the cost of capital, Is the marginal price of an investment

Question 26

Self-financing from operating CF is a precondition for a company's long-term survival.

Accepted Answer

True

Question 27

The payback period

Accepted Answer

Gives an idication of the risk of an investment., Determines the break-even point of an investment., Can be calculated using discounted cashflows.

Question 28

The debtors collection period is

Accepted Answer

Average time a company needs to collect receivables., Measured in days.

Question 29

Depreciation is always liquidity neutral

Accepted Answer

True

Question 30

Your dream house is 300,000.00. Your bank offers you a loan: 30 years at 4% p.a. How high is your annuity?

Accepted Answer

17,349

Question 31

Financing is...

Accepted Answer

An inflow of cash that leads to outpayments in the future.

Best of Financial Management Quizes

Questions 31

Best of Financial Management Quizes

Questions 31