Book value is_______________.
A. the same as market value
B. a more accurate valuation technique than the dividend models
C. the accounting value of the firm as reflected in the financial statements
D. the same as liquidation value
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To whom does the Treasurer most likely report?
A. Chief Financial Officer
B. Vice President of Operations
C. Chief Executive Officer
D. Board of Directors
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The price to book value ratio tends to be close for_____________.
A. high-tech companies
B. banks
C. utilities
D. service companies
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The return after the pay off period is not considered in case of __________.
A. Payback period method
B. Interest rate method
C. Present value method
D. Discounted cash flow method
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___________ shifts the weights of securities in the portfolio to take advantage of areas that is expected to do relatively better than other areas.
A. portfolio management
B. market timing
C. momentum strategy
D. sector rotation
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Depreciation is include in costs in case of __________.
A. Pay back method
B. Accounting rate
C. Discounted cash flow
D. Present value method
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The central issue of efficient markets concerns______________.
A. regulations
B. information
C. participants
D. structure
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What is the most appropriate goal of the firm?
A. Shareholder wealth maximization
B. Profit maximization
C. Stakeholder maximization
D. EPS maximization
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A bond issue is broken up so that some investors will receive only interest payments while others will receive only principal payments, which is an example of ________.
A. bundling
B. un-bundling
C. financial engineering
D. credit enhancement
E. B & C
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__________ is concerned with the acquisition, financing, and management of assets with some overall goal in mind.
A. Financial management
B. Profit maximization
C. Agency theory
D. Social responsibility
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If a market is inefficient, as new information is received about a security____________.
A. nothing will happen
B. the stock price will fall at first and then later rise
C. there will be a lag in the adjustment of the stock price
D. there will be negative demand for the stock
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The bonus issue is permitted to be made out of __________ and premium collected in cash.
A. free reserves
B. free interest
C. free bonus
D. free cash dividend
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The bonus issue is made to make the nominal value and the __________ value of the shares of the company.
A. Face
B. Market
C. Stock
D. Real
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The highest level of market efficiency is_____________.
A. weak form efficiency
B. semi-strong form efficiency
C. random walk efficiency
D. strong form efficiency
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Having defined working capital as current assets, it can be further classified according to __________.
A. Financing method and time
B. rate of return and financing method
C. time and rate of return
D. components and time
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The weak form of the EMH is supported if successive price changes over time are________.
A. independent of each other
B. negative
C. positive
D. lagged
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Dividend policy of a firm affects both the long-time financing and __________ wealth.
A. Owners
B. Creditors
C. Debtor
D. Shareholders
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The random walk hypothesis is most related to the___________.
A. weak-form EMH
B. semi strong-form EMH
C. semi weak-form EMH
D. strong-form EMH
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______________ is the distribution of the profits of a company among its shareholders.
A. Shares
B. Interest
C. Dividend
D. Commission
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If an investor searches for patterns in security returns by examining various techniques applied to a set of data, this is known as__________.
A. fundamental analysis
B. technical analysis
C. data mining
D. random-walk theory
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