1591. Return on assets = 6.7 % and equity multiplier = 2.5 % then return on equity will be ________?

A. 16.75 % *
B. 2.68 %
C. 0.37 %
D. 9.20 %

1592. An uncovered cost at start of year is divided by full cash flow during recovery year then added in prior years to full recovery for calculating ?

A. Original period
B. Investment period
C. Payback period *
D. Forecasted period

1593. In capital budgeting , an internal rate of return of project is classified as its _____?

A. External rate of return
B. Internal rate of return *
C. Positive rate of return
D. Negative rate of return

1594. In capital budgeting , Number of Non- Normal cash flows have internal rate of returns are _________?

A. One
B. Multiple *
C. Accepted
D. Non- accepted

1595. Bond which is offered below its face value is classified as _______?

A. Present value bond
B. Original issue discount bond *
C. Coupon issued bond
D. Discounted bond

1596. Redemption option which protects investors against rise in interest rate is considered as ________?

A. Redeemable at deferred
B. Redeemable at par *
C. Redeemable at refund
D. Redeemable at finding

1597. Cash flows that should be considered for decision in hand are classified as _________?

A. Relevant cash flows *
B. Irrelevant cash flows
C. Marginal cash flows
D. Transaction cash flows

1598. Cost which occurred already and not affected by decision is classified as ________?

A. Sunk cost *
B. Occurred cost
C. Weighed cost
D. Mean cost

1599. Project which is started by firm for increasing sales is classified as _____?

A. New expansion project *
B. Old expanded project
C. Firm borrowing project
D. Production line selection

1600. Cost of common stock is 16% and bond yield is 9% then bond risk premium would be _______?

A. 7 % *
B. 8 %
C. 1.78 %
D. 25 %