In: Finance
Which of the following statements is FALSE?
Select one:
a. It is possible to face with multiple IRRs.
b. The Discounted Payback Method provides a solution for all the shortcomings of the Payback Period Method.
c. None of the above
d. A NPV will always exist for an investment opportunity.
Which of the following is NOT an equity market instrument?
Select one:
a. Government Bonds
b. Common Stocks
c. Preferred Stocks
d. None
Which of the following is NOT an equity market instrument?
Select one:
a. Government Bonds
b. Common Stocks
c. Preferred Stocks
d. None
A company is considering three mutually exclusive projects with the below provided information. Which project the company should accept if its cost of capital is 10%?
Preject |
Project’s Life in years |
Initial Investment |
PV of Net Cash Flows at 10% |
X |
7 |
-17,000 |
23,000 |
Y |
6 |
-16,000 |
21,000 |
Z |
7 |
-16,000 |
21,000 |
Select one:
a. Project Z
b. Project X
c. Project Y
d. Projects X and Y
For a put option, if the spot price is higher than the exercise price, the option is said to be ................
Select one:
a. Out-of-the-money
b. Under the money
c. In the money
d. At the money
Which of the following statements is FALSE?
Select one:
a. Organized markets are financial markets in which contracts that provide its holder either the obligation or the choice to buy or sell a financial asset are traded.
b. None
c. OTC markets are financial markets whereby geographically dispersed traders are linked to one another via telecommunications systems and computers, trade in securities.
d. A secondary market is a financial market in which financial claims previously issued are exchanged.