21. Which of the following unrelated statement/s is/are false?

I. Depreciation and Amortization are added back to EBIT as they are non-cash expenses and the resulting figure is EBITDA

II. By default, the beta coefficient is used in measuring the fluctuations of stock returns.

III. The bulls in the saying "The bulls make money,the bears make money,the pigs get slaughtered"make money by shorting

IV. Leverage ratio would be lower than 1 if the firm has some level of debt

a. I only

b. II, III & IV

c. II only

d. III only

22. Which of the following unrelated statement/s is/are false?

I. Debt burden and leverage ratio are 1 if the firm does not have any debt

II. Generally speaking, a shorter operating cycle is preferred than a longer one

III. The operating cycle is the time it takes the business to collect on its accounts receivables after it has paid for its inventories

IV. In the corporate set-up, shareholders are its agents and its managers are the principals

a. III only

b. III & IV

c. IV only

d. I only

23. Which of the following unrelated statement/s is/are true?

I.A firm commitment is an underwriting arrangement where the underwriter/s agrees to buy all the shares that the company is willing to offer

II. Diluted EPS can be the same but never lower than basic EPS

III. When a private company wants to go public, it does so in the secondary market

IV. Another way for a private company to be become a public company is via a direct public offering

a. I, II & IV

b. I only

c. III only

d. I & IV

40. Which of the following unrelated statement/s is/are true?

I. A private company raises additional funds in a direct public offering

II. A private company does not raise additional funds in an initial public offering

III. The global pandemic is a good example of an unsystematic risk

IV. The figures in the balance sheet are for a specific date only

a. IV only

b. I & II

c. III only

d. II & III

25. Given the board lot table below, how many board lots of DNL Industries, Inc. (DNL) can you buy with Php 20,000 if it is trading at Php 6.5/share?

BOARD LOT X Fluctuation Board Lot Currency Code PHP PHP PHP PHP PHP PHP Minimum Maximum Price Price 0.0001 0.0099 0.01 0.049 0.05 0.249 0.25 0.495 0.5 4.99 5 9.99 10 19.98 20 49.95 50 99.95 100 199.9 200 499.8 500 999.5 1000 1999 2000 4998 5000 1000000 PHP 0.0001 0.001 0.001 0.005 0.01 0.01 0.02 0.05 0.05 0.1 0.2 0.5 1 1000000 100000 10000 10000 1000 100 100 100 PHP 10 10 PHP PHP PHP PHP 10 10 PHP 5 2 PHP PHP 5 5 5 30 board lots 3,500 shares 3,000 shares 31 board lots