2021–2022 Ara Sınavı Çıkmış Soruları

1. Suppose that "Red Company" has a project proposal, requiring initial investment of 500 million USD. The expected rate of return from expansion investments (discount rate) is 20%. Projected non-cumulative cash inflows (USD in millions) of the project for the next three years are as follows. Year 1 - 190 Year 2 - 280 Year 3 - 400 (1.22 = 1.44; 1.23 = 1.73) Relying above information, what is the net present value of the project? (USD in millions) net A) 92.54 B) 83.99 C) 74.39 D) 68.41 E) 55.74

2. ABC Corp. has a bond issue outstanding for which the yield-to-maturity is 10%. Analysts estimate a risk premium of 4% for the company's stock. ABC's beta is 1.5. What is the expected cost of equity of ABC Corp. according to bond yield + risk premium approach? A) 14% B) 16 % C) 19% D) 20 % E) 21 %

3. Which of the following is used in order to modify internal rate of return in "Modified Internal Rate of Return Technique" of capital project evaluation? A) Terminal value B) Book value C) Sunk cost D)S Liquidation value • Net present value

4. I. Permanent sources of finance Il. Irredeemable III. No fixed dividend payment obligation IV. Lower cost of capital Which of the above are among the advantages of common stock? A) I and |l B) III and IV C) I, III and IV D) II, Ill and IV E) I, II, Ill and IV

5. Optimum capital structure is ..... Which of the following completes sentence above? A) the capital structure at which the sales level is at maximum B) the capital structure at which the weighted average cost of capital is minimum C) the capital structure at which the value of the firm is minimum D) the capital structure at which the borrowing cost is minimum E) the capital structure at which the weighted average cost of capital is maximum