In large expansion programs, the increased riskiness and the floatation cost associated with project can cause ___________?

Related Mcqs:

1. In large expansion programs, increased riskiness and flotation cost associated with project can cause_______________?

   A. Rise in marginal cost of capital
   B. Fall in marginal cost of capital
   C. Rise in transaction cost of capital
   D. Rise in transaction cost of capital

2. The situation in which one project is accepted while rejecting an other project in comparison is classified as __________?

   A. present value consent
   B. mutually exclusive
   C. mutual project
   D. mutual consent

3. The bonds that are backed by cash flow from project and are sold to finance particular project are classified as ____________?

   A. finance bonds
   B. revenue bonds
   C. financing bonds
   D. project bonds

4. A company’s low earnings power and high interest cost cause financial changes, which have ___________?

   A. high return on equity
   B. high return on assets
   C. low return on assets
   D. low return on equity

5. A risk associated with project and way considered by well diversified stockholder is classified as______________?

   A. Expected risk
   B. Beta risk
   C. Industry risk
   D. Returning risk

6. Present value of future cash flows is divided by an initial cost of project to calculate_______?

   A. Negative index
   B. Exchange index
   C. Project index
   D. Profitability index

7. A discount rate which is equal to the present value of TV to the project cost present value is classified as _________?

   A. negative internal rate of return
   B. modified internal rate of return
   C. existed internal rate of return
   D. relative rate of return

8. The payback period in which an expected cash flows are discounted with the help of project cost of capital is classified as __________?

   A. discounted payback period
   B. discounted rate of return
   C. discounted cash flows
   D. discounted project cost

9. The present value of future cash flows is divided by an initial cost of the project to calculate __________?

   A. negative index
   B. exchange index
   C. project index
   D. profitability index

10. Payback period in which an expected cash flows are discounted with help of project cost of capital is classified as___________________?

    A. Discounted payback period
    B. Discounted rate of return
    C. Discounted cash flows
    D. Discounted project cost