1) Anvostment declaiona in finenolal management thciud a. Capital budgeting 7) Wyden Brothers has no retalned earnings. The company uses the conststs of common stock, preferred stock, and debt. Which of the following b. Funding neede consists of common stock, preferred stock, 6. Investment appraisa events will reduce the company's whCC? d. The need to be profitable a. A reduction in the market risk premiu 0. Use of funds b. An increase in the company's beta. 2) Which types of bonds can be repurchased by the isating company? d. An increase in the flotation costs of issuing new common stock. a. Unsecured bond e. None of the above b. Redeemable bond c. Non-convertible bond d. Convertible bond e. Bearer bond 3) a. Perpelulty 8) Congiomerate inc. consists of 2 divisions of equal size, and Conglomerate is 100 percent equity financed. Division A's cost of equity capital is g. percente's while Division B's cost of equily Aapilal Is 14 percent projects in Division A are not the same tisk as those in Division B. Which of the following projects should Conglomerate accept? erpelully payment prolect with a 10 percent return. c. Ordinacy annuity d. Annulty due 4) Basket Wonders (BW) has a OH10,000CD at the bank. The interest rate is b. Division A project with an 11 percent return. c. Division B project with a 12 percent return. C. Division B project with a 12 percerinterurn. Basket Wonders (BW) Has a QH 1, 10,000 CD at the berik. The interest rate is a 14 percent return, Rale (EAR)? a. 6.52% following statements is true b. 6.33% c. 6.23% b. It is difficult to estimate. c. It is complex to calculate. d. 6.14% he time value of money. 5) The Lashgari Company Is expected to pay a dividend of GH\&1 per share at the end of the year, and that dividend is expected to grow at a constant rate of 5% 5%, and the risk-tree rate is 3%. What is the company's current stock price? a. GH25.00 b. GH430.00 o. GHd10.00 d. GH\$15.00 e. II is not a capital budgeting technique. 10) Assume a project has normal cash flows. All else equal, which of the following statements is CORRECT? a. The project's IRR increases as the WACC declines. b. The project's IRR is unaffected by changes in the WACC. c. The project's NPV decreases as the WACC declines. d. The project's NPV increases as the WACC declines. e. The projact's regular payback increases as the WACC declines. 6) Campbell Co. Is trying to estimate its weighted average cost of oap tal (WACC). 11) The proportion between equity and debt finance for a firm is referred to as Which of the following statements is most correct? a. Since retained earnings are reacily avallable, the b. The after-tax cost of debt is generally cheaper than the after-tax cost of equily. c. The after-tax cost of debt is generally more expensive than the beforetax cost of debt. d. Statement b and c are correct o. Statements a and c are correct. 18) In order to calculate Weighted Average Cost of welghts may be based on: a. financing needs b. finance structure c. equity-to-debt d. debt-to-equity ital structure. a. Target Values b. Renale Values c. Market Values e. All of the above. 19) The agency problem is a driving force behind the growing importance attached 36) Using the constant growh dividend discount model, what is the total to sound corporate governance. In this context, the 'agents' are the: a. Shareholders b. Managers c. Employees Auditors 20) The following are types of financial statement analysis except: a. Index analysis. b. Horizontal analysis. c. Financial ratios: d. Du Pont analysis. c. Common-3ize statements. 21) The competing goal of finance are: a. Profits versus returns b. Profit versus wealth c. Agents versus shareholders d. Returns versus wealth e. Agency theory 22) One of the critical activities of financial management is... a. Preparing financlal statements b. Analysing financial statements c. Bourcing for funds d. Borrowing 2. Calculating profits or losses 23) Financial management in business organizations is termed ....... a. Prolit-Making Finance b. Non-Profit Making Finance c. Corporate Finance d. Public Finance 5. SME Finance Angel's equily? - Polnally Generated funds are classified under * Debtfinance b. Equly finance 5. Gapital firiance d. Corporate finance 5. Pirference finiance