TCDN 25032023

1.       The bond’s par value is:

• The stated interest payment made on the bond

• The principal amount of a bond that is repaid at the end of the term

• Both of them are correct

• Both of them are wrong

What is the relationship between the bond’s valuation and required rate of return?

• Positive

• Negative

• No effect

• Not enough information to make a conclusion

At NPV=0, what is the project’s rate of return?

• IRR

• MIRR

• Both of them are correct

• Both of them are wrong

Which of the following indicator is the most suitable for choosing an investment?

• Percentage return

• Standard deviation

• Coefficient of variation

• Covariance

Covariane is positive indicates which of the following

• Correlation coefficient is positive

• Correlation coefficient is zero

• Correlation coefficient is negative

• Not enough information to make a conclusion

Which of the following costs is less than the cost of equity?

• The cost of debt

• The weighted average cost of capital

• Both of them are correct

• Both of them are wrong

The cost of debt (bond) is usually greater than YTM because

• The bond’s interest

• The issuarance cost

• Both A&B are correct

• Both A&B are wrong

The firms use financial leverage with the following objective

• Increase revenue

• Increase operating profit

• Increase the earning after-tax

• Both all of them are correct

Which  of the following is indicated from the M&M (with corporate tax)

• The firm value increases as debt increase

• The firm value is dependent capitak structure

• The firm value increases as debt decrease

• Not information to make a conclusion

According to the pecking order theory, which source of capital should the firm use first?

• Retain earning

• Debt

• Preferred stock

• Common stock