311. Right held with corporations to call issued bonds for redemption is considered as___________?
A. Artificial provision
B. Call provision
C. Redeem provision
D. Original provision
312. Required rate of return in calculating bond’s cash flow is also classified as_______?
A. Going rate of return
C. Earning rate
D. Both A and B
313. If default probability is zero and bond is not called, then yield to maturity is_____________?
A. Mature expected return rate
B. Lower than expected return rate
C. Higher than expected return rate
D. Equal to expected return rate
314. Cash flows that could be generated from an owned asset by company but not use in project are classified as_________________?
A. Occurred cost
B. Mean cost
C. Opportunity costs
D. Weighted cost
315. Relevant cash flow which company expects when its will implement project is classified as_____________?
A. Irrelevant cash flow
B. Relevant cash flow
C. Incremental cash flow
D. Decrease cash flow
316. Nominal interest rates and nominal cash flows are usually reflected the____________?
A. Inflation effects
B. Opportunity effects
C. Equity effects
D. Debt effects
317. In cash flow estimation, depreciation shelters company’s income from_______?
318. Weighted average cost of debt, preferred stock and common equity is classified as_____________?
A. Cost of salvage
B. Cost of interest
C. Cost of taxation
D. Cost of capital
319. In cash flow estimation and risk analysis, real rate will be equal to nominal rate if there is__________?
A. No inflation
B. High inflation
C. No transactions
D. No acceleration
320. Rate of return which is required to satisfy stockholders and debt holders is classified as__________?
A. Weighted average cost of interest
B. Weighted average cost of capital
C. Weighted average salvage value
D. Mean cost of capital
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