1)._________is the process of evaluating and selecting long term investments that are consistent with the firm's goal of maximizing owners wealth

A. securitization

B. recapitalizing assets

C. capital budgeting

D. ratio analysis

2) Nico bought 100 shares of X systems for 30 per share on January 1, 2018. He received a dividend of 2.00 per share on 1 June 2018, and Nico sold his shares for 36 per share at the end of 2018. What was Nico realized holding period return?

A. -40%

B. -36.36%

C. +26.7%

D. +36.36%

3) The money that firms raise to finance their activities is called____.

A. budget

B. accruals

C. working capital

D. capital

4) An annuity with an infinite life is called a(n)________.

A. Option

B. deep discount

C. perpetuity

D. primia

5) A firm is evaluating a proposal which has an initial investment of 35,000 and has cash inflows of 20,000 in year 1, 20,000 in year 2, and 10,000 in year 3. The payback period of the project is______

A. 2 years

B. between 2 and 3 years

C. between 1 and 2 years

D. 1 year

6) A firm conducting an IPO of ordinary shares sold 1 million new shares in the offering at an offer price of 11 per share. After the offering, the firm had 5 million shares outstanding, and the price of those shares in the secondary market was 12. the total proceeds from the firm's IPO were:

A. 60 million

B. 50 million

C. 11 million

D. 12 million