FM-MIDTERM P5-6

What is the company's assets and liabilities in terms of the current market values?

• Market Value

• Net Asset Value

• Book Value

• Fair Value

What is the net difference between the total discounted value of future cash flows and the investment at the present time?

• Internal Rate of Return

• Net Present Value

• Future Value

• Return on Investment

What is a fixed cost in short, used to measure a company's cost structure?

• Operating Leverage

• Financial Leverage

• Profit Margin

• Gross Margin

What is an investor's combined investment of risky and risk-less assets like stocks and T-bills, respectively?

• Diversified Portfolio

• Optimal Risky Portfolio

• Balanced Fund

• Growth Portfolio

What is a contractual security giving the right of a buyer or seller to trade in main financial assets like stock, bond, foreign exchange, commodities, and interest rates?

• Futures Contract

• Derivative

• Option

• Swap

What is the market network outside the organized stock exchange or option exchange, involving transactions between banks, dealers, brokers, and investors?

• OTC (Over-the-Counter Market)

• Stock Exchange

• Futures Market

• Private Equity Market

What is the capital contributed by a company's shareholders and reported as stockholders' equity in the balance sheet?

• Paid-in Capital

• Retained Earnings

• Share Premium

• Treasury Stock

What is the amount of money that the issuer promises to repay bondholders at the maturity date?

• Par Value of the Bond

• Coupon Rate

• Face Value

• Market Price

What is the secondary market trading place for fixed-income securities like corporate and government securities in the Philippines?

• Philippine Stock Exchange (PSE)

• Philippine Dealing Exchange (PDEx)

• Makati Securities Exchange

• Philippine Futures Exchange

What is the combination of a common stock and a stock put option used to protect a portfolio?

• Portfolio Insurance

• Hedging

• Covered Call

• Protective Put