1-Which is true about primary and secondary capital market? a- Both primary and secondary capital markets relate to the sale of new securities

b- Primary markets are where stocks trade and secondary markets are where loan notes trade

c- Primary capital markets relate to the sale of new securities, while secondary capital markets are where previously issued securities are traded.

d- Both primary and secondary capital markets relate to where securities are traded after their initial offering.

2-Which of the following statements is / are true?

I. Wealth maximization depends on the market price per share

II. The term wealth means managers wealth

III. Wealth maximization is also called net present worth maximization a- All statements are true

b- All statements are false

c- I and II

d- I and III

3-Costs associated with keeping stock over time is called: a- Variable costs

b- Carrying costs

c- Fixed costs

d- Ordering costs

4- Interest divided by net proceeds equals to: a- Cost of equity capital

b- Inventory costs

c- Cost of debt

d- Cost of preference capital

5-VED analysis is an inventory management technique that classifies inventory based on its: a- Impact on overall inventory cost

b- Functional importance

c- Cost composition

d- Minimum level