Question

In: Finance

Which of the following statements is FALSE? Select one: a. It is possible to face with...

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.

Solutions

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